Supply Chain Woes, Housing Growth, and Market Updates

Originally published December 20, 2024. This version was rebuilt from the National Association of Realtors, Big Lots' court-process update and the University of Michigan survey for the FIN archive, and the facts are as of that date.

The week before Christmas 2024 brought the best existing-home sales report in months, a setback for a major discount furniture seller, and firmer consumer sentiment.

The short version

• NAR said existing-home sales rose 4.8% to 4.15 million in November.
• Big Lots said it no longer anticipates closing its sale to Nexus and was preparing going-out-of-business sales.
• The University of Michigan's December sentiment reading was 74.0, up from 71.8.

Housing market trends

NAR said existing-home sales rose 4.8% in November to an annual rate of 4.15 million, the fastest since March, and were 6.1% higher than a year earlier, the largest yearly gain since June 2021. The median price rose 4.7% to $406,100.

Inventory slipped 2.9% to 1.33 million homes, or 3.8 months of supply. Rising sales and tight supply pointed to more move-ins in early 2025, a good sign for furniture.

Retail trends

On December 19 Big Lots said it no longer anticipates completing its sale to Nexus Capital Management. It was still pursuing a going-concern deal but preparing going-out-of-business sales at its remaining stores in parallel.

Big Lots had been a major seller of value furniture and mattresses. Liquidation sales would add discounted inventory to the market and push other value retailers to compete on price.

Update. In January 2025 Gordon Brothers completed the purchase of Big Lots and a going-concern sale that kept hundreds of stores open.

Consumer mood

The University of Michigan's December index of consumer sentiment was 74.0, up from 71.8 in November and the highest reading in seven months.

Steady sentiment heading into 2025 supported the view that shoppers would keep spending, even as concern about future tariffs grew.

Market updates

Housing had its best month in a while and consumers held steady, while a big discount chain headed toward liquidation. Furniture retailers entered 2025 with more move-ins and more price competition.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Every Door in Town

Sources

• National Association of Realtors, Existing-home sales, November 2024
• Big Lots, Inc., Update on court-supervised process (Dec. 19, 2024)
• Gordon Brothers, Completes Big Lots purchase (Jan. 9, 2025)
• University of Michigan, Surveys of Consumers, preliminary December 2024