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Sales to purchase an existing home rose in December to the strongest pace in almost a year amid high mortgage rates and elevated home prices.

Existing home sales climbed 2.2% in December to a seasonally adjusted annual rate of 4.24 million, according to the National Association of Realtors, the strongest pace since February 2024. Economists polled by Bloomberg expected existing home sales to hit a pace of 4.2 million in December.

“Home sales in the final months of the year showed solid recovery despite elevated mortgage rates,” NAR chief economist Lawrence Yun said in a statement. “Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months.”

Some house hunters are still hesitant due to expensive housing costs. Mortgage rates, which have been rising over the past six weeks, slightly dipped this week.

According to Freddie Mac, the average 30-year fixed mortgage rate fell 8 basis points to 6.96% from 7.04%.

Meanwhile, home prices continue to remain high. The median home price increased by 6% from December 2023 to $404,400, marking the eighteenth consecutive month of year-over-year price gains and the largest annual growth since October 2022.

“The median home price was elevated partly due to the upper-end market’s relative better performance,” Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”