The U.S. housing market experienced the typical year-end deceleration in November 2023, as indicated by the RE/MAX National Housing Report. Home sales dipped 9.8% compared to October and fell 6.5% versus the same period last year. The median sales price of homes also declined, hitting the lowest level in eight months.
Rising interest rates for most of the year contributed to the slowdown, although recent decreases in rates could stimulate more market activity. The inventory of homes for sale saw a marginal decrease, dropping 1.6% from October and declining 2.6% compared to November 2022.
Across the 52 metro areas surveyed, the median home sale price in November was $405,000, reflecting a decrease of $5,000 from October but marking an increase of $13,000 from November 2022. The number of new listings rose by 1.5% year over year, despite a 19.1% drop from October.
Homes sold in November were on the market for an average of 40 days, four days longer than in October and one day more than the same period last year. These homes sold for an average of 99% of the listing price, unchanged from October and up from 98% in November 2022.
The supply of inventory in November was 2.6 months, larger than the 2.3 months recorded in October and the 2.5 months seen in November 2022.
Drilling down into local market metrics for November, of the 52 metro areas surveyed, the number of newly listed homes declined 19.1% compared to October but rose 1.5% compared to November 2022. The overall number of home sales dropped 9.8% compared to October and fell 6.5% compared to November 2022.
The median of all 52 metro area sales prices in November was $405,000, down 1.2% compared to October but up 3.3% from November 2022. In terms of the close-to-list price ratio, the average across all 52 metro areas in the report was 99%, unchanged from October and up from 98% in November 2022.
The average days on market for homes sold in November was 40, up four days compared to October and up one day compared to November 2022. Based on the rate of home sales in November, the month’s supply of inventory was 2.6, up compared to 2.3 in October and 2.5 in November 2022.
This data underscores the cyclical nature of the housing market, which typically sees a slowdown towards the year’s end. However, with interest rates showing signs of easing, the market could see renewed activity in the coming months. As such, homebuyers and real estate investors should keep a keen eye on these trends as they navigate the real estate market.
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