As we approach 2024, the housing market is experiencing a notable shift, with more homes remaining on the market.
This trend is leading to an uptick in active listings and overall inventory levels.
Current Market Trends
A recent report from Redfin shows that active listings have surged by 12% year-over-year, reaching a total of 954,703 properties during the four-week period ending December 22.
However, this increase marks the slowest growth rate we’ve seen since March.
In the realm of pending sales, the numbers tell a different story.
During the same four-week stretch, there were 58,267 pending home sales, reflecting a 3.4% decrease compared to the previous year—this downturn is significant as it represents the first decline in three months.
Meanwhile, new listings held steady at 54,077, indicating a consistent flow into the market.
Inventory Levels and Pricing
Looking at housing supply, we now have a healthy inventory level of four months, which has risen by 0.6 points from last year.
This range of supply is considered balanced, while lower numbers typically favor sellers.
Interestingly, homes are taking longer to sell.
The average time spent on the market has increased by six days from last year, now averaging 45 days.
This extension in time suggests reduced competition for sellers.
Regional Variations
Examining regional trends, Philadelphia saw the highest annual increase in median sales price, jumping 17.1%.
Milwaukee and Cleveland followed closely, with rises of 14.3% and 13.3%, respectively.
What’s notable is that not a single metropolitan area recorded a decline in sales prices.
Nationwide, the median sales price stands at $383,725, reflecting a 6% increase from last year.
Pending sales in various metropolitan areas showed a mix of results, with Detroit at the forefront, witnessing a 7.8% rise.
Anaheim, California, and Providence, Rhode Island, followed with increases of 6.5% and 5.7%.
In contrast, cities like San Antonio experienced the most significant declines, with a drop of 17.4%, while Orlando and Houston also faced decreases of 14% and 13.7%, respectively.
These intertwined factors illustrate a shifting landscape in the housing market as we move into the new year.
Source: Housingwire