HouseCanary, Inc., a leading national real estate brokerage, has published its November Market Pulse Report. The report reveals that the number of new listings being put on the market remains 10.9% lower than November 2022, indicating a slowdown in market activity.
This comes at a time when mortgage rates have begun to decrease after months of steady increases by the Federal Reserve. This shift follows data suggesting inflation may be slowing down, leading to the lowest mortgage rates in over two months. However, it will take some time before the impact of these reduced rates is reflected in home prices.
Despite these changes, the housing market still lags behind pre-pandemic inventory levels. The report suggests that the recent decrease in rates, combined with the ongoing low inventory, could potentially increase demand and keep home prices high throughout 2024. High mortgage rates are expected to deter potential buyers, keeping them on the sidelines until further rate reductions occur.
Jeremy Sicklick, Co-Founder and CEO of HouseCanary, shared his insights on the current state of the housing market. He acknowledged the optimistic outlook brought about by the decreasing rates but emphasized that the market continues to struggle with low activity due to limited inventory. Sicklick also indicated that it’s unlikely mortgage rates will return to pre-pandemic levels soon, hinting at a ‘new normal’ of higher-than-average rates. This, he predicts, will lead to purchase activity in 2024 remaining below average compared to previous years.
The report provided several key findings:
- Over the past year, 2,460,745 new listings were placed on the market, and 2,584,363 properties went under contract, marking a decrease of 21.1% and 15.5%, respectively.
- In November 2023 alone, there were 157,658 new listings and 212,430 properties went under contract, representing a decrease of 10.9% and 1.2%, respectively, compared to November 2022.
- The decline in new listings was driven by a 12.3% decrease in new listing volume and a 15.4% decrease in removals compared to the same period last year.
- Total inventory has increased by 1.7% from 2022 and 5.8% from 2021, but still remains historically low.
- The median time on market stands at 43 days, down 4.4% from the previous year’s 45 days.
- The median price for all single-family listings in the US was $429,633, and the median closed price was $402,891. Year-over-year, the median price of all single-family listings increased by 3.1%, and the median price of closed listings rose by 6.1%.
This report offers a comprehensive view of the current housing market, highlighting the challenges posed by low inventory and high mortgage rates. It underscores the need for potential buyers to adapt to the evolving landscape of the real estate market.
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