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Despite higher mortgage rates and elevated home prices, existing home sales jumped to a 10-month high in December, marking three monthly gains in annual growth, according to the National Association of Realtors (NAR). However, existing home sales end 2024 at 4.06 million, the lowest level since 1995 as the median price reached a record high of $407,500 in 2024.

While inventory improves and the Fed continues lowering rates, the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. The prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 2.2% to a seasonally adjusted annual rate of 4.24 million in December, the highest level since February 2024. On a year-over-year basis, sales were 9.3% higher than a year ago, the largest annual gain since June 2021. However, total sales in 2024 fell to 4.06 million, breaking below 2023’s record low of 4.10 million and marking the lowest annual level since 1995.

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 77.3 to 79.0 in November due to improved inventory. This marks the highest level since February 2023. On a year-over-year basis, pending sales were 6.9% higher than a year ago per National Association of Realtors data.

EPAB President's Message

Despite challenges our industry is resilient

First, let me take a moment to introduce myself. My name is Victor A. Robles, president of Maravilla Homes and newly elected president of the El Paso Association of Home Builders. I’m honored to step into this role and excited to work alongside our dedicated members to strengthen the homebuilding industry in our region.

As we kick off this year, it’s already shaping up to be one of challenges and opportunities. The country begins this new chapter under the leadership of President Donald Trump, and here in Texas, we will collaborate closely with government officials in Austin to advocate for the needs of our industry. From local regulations to statewide policies, we must ensure that the voices of homebuilders and homeowners alike are heard and valued.

The Texas homebuilding industry faces unique challenges this year. Among them, labor shortages remain a pressing concern. With an aging workforce and fewer young professionals entering skilled trades, addressing this gap is vital for keeping projects on schedule and meeting growing housing demands. As president of the association, I aim to support initiatives that promote training programs and partnerships to attract new talent into our field.

Additionally, rising material costs and regulatory changes pose hurdles for builders. The cost of materials like lumber and concrete continues to fluctuate, adding financial strain to both builders and buyers. Meanwhile, navigating evolving regulations can be complex and time-consuming. To overcome these issues, we will work collectively to advocate for solutions that promote affordability without sacrificing quality.

Economic uncertainty and limited land availability also contribute to the challenges ahead. As we face these realities, our focus must remain on innovation, sustainability, and smart growth. By embracing new technologies and sustainable practices, we can build homes that meet modern needs while preserving the character of our beloved El Paso.

Despite these challenges, I believe in the resilience of our industry. Together, we can create opportunities for growth, advocate for policies that benefit both builders and homeowners, and continue to make El Paso a vibrant place to live.

Thank you for your trust and support as we embark on this journey together. Here’s to a successful year for the El Paso homebuilding community!

Warm regards,
Victor A. Robles
President, Maravilla Homes &
El Paso Association of Home Builders

Executive Message

New year brings refreshment of many things

By Ray Adauto
Executive Vice President, EPAB

The new year brings with it a refreshment of many things.

At the Association not only do we have a new leadership and Board but also a new strategy for how we will move forward with members and staff.

First, as members are aware, the EPAB is transitioning into a new association management system called NOVI. This system will replace traditional excel spreadsheets, word docs, and numerous office captures and bring us into a more compact and systematic system that is easy to run and manage. It will not only be new to us but to our members as well. Each membership will have an enhanced membership experience, one where some control will be in your hands.

For example our information on each member has to coordinate with at least four different lists, from email to app, the coordination is sometimes not correct, and the correction takes a long time. With NOVI we will ask you to partner with us to ensure your information is up to date. We will incorporate a new website with abilities for growth, more robust and friendlier. As a member you will be given a portal specifically for you, somewhere you can see events, receive invoices, pay invoices, get tickets, and much more.

As a part of this system the EPAB will join other associations across the country in a safe and secure membership system. Roll out is targeted by April.

February will bring in two major events for us, Rally Day at the state Capitol, and IBS in Vegas. I have the appointments with our state reps lined up, and the NAHB IBS registration done. I hope you will join us at both.

Now go out and sell something.





Limited inventory boosts new home sales

A limited amount of existing inventory along with solid demand helped new home sales end the year on an up note, even as buyers continue to grapple with housing affordability challenges.

Sales of newly built, single-family homes in December increased 3.6% to a 698,000 seasonally adjusted annual rate from an upwardly revised November number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December was up 6.7% compared to a year earlier.

“New home sales ended 2024 higher on ongoing limited resale inventory conditions,” said Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan. “Builders are cautiously optimistic about the building market for 2025 given a post-election policy reset that seeks to eliminate unnecessary regulations.”

“New home sales ended the year 2.5% higher over the 2023 total,” said NAHB Chief Economist Robert Dietz. “NAHB is forecasting a slight gain for sales in 2025 given ongoing solid macroeconomic conditions, particularly for the labor market.”

A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the December reading of 698,000 units is the number of homes that would sell if this pace continued for the next 12 months.

New single-family home inventory in December continued to rise to a level of 494,000, up 10% compared to a year earlier. This represents an 8.5 months’ supply at the current building pace. Completed ready-to-occupy inventory is up 46% to a level of 118,000, compared to a year ago.

NAHB estimates the combined new and existing total months’ supply (8.5 months’ supply for new homes while the much larger resale market was at 3.1) fell to just a 4 months’ supply in December, the lowest since April 2024. The market has not been near a 6 months’ supply, which represents a balanced market, since 2012.

The median new home sale price in December was $427,000, up 2.1% from a year ago.

Regionally, on a year-to-year basis for 2024 totals, new home sales were strongest in the Midwest, up 19% in 2024. Sales also rose 1.7% in the Northeast and 2.6% in the West but declined 0.2% in the South.