The housing market has experienced its share of fluctuations in the past year, but by the end of 2023, there were some promising indicators that suggest that 2024 may be a more favorable market. There are several factors to consider when we try to understand how the market is moving.
New Listings Surge, Offering Hope for Buyers
In November 2023, the national real estate scene witnessed a substantial 7.5% increase in new listings compared to the same month the previous year. This is a notable shift since May 2022, marking a year-over-year rise. Looking at the year-over-year comparison gives us a more comprehensive and reliable view of the change in the market instead of using month-to-month, which can fluctuate more.
New listings signify an increase in confidence in the housing market and offer buyers more options to choose from. The annual growth seen in new listings happened across most major markets, meaning that those new options were spread out across the United States.
Active Listings Reach New Highs
Active listings, closely linked to the influx of new properties, experienced a noteworthy annual increase of 0.68% in November 2023. This annual increase follows eight consecutive months of growth. In fact, in November, active listings hit their highest level since September 2020.
This development is a clear sign that the housing market is turning the corner. Much of this growth is concentrated in Southern markets. Some of the areas with the highest number of active listings include Miami, Houston, Dallas, Atlanta, Tampa, Phoenix, Los Angeles, Chicago, and New York.
With a greater inventory of homes available on the market, prospective buyers are better positioned to find their dream homes.
Median Listing Price Aligns with Market Conditions
Median listing prices are slowly growing. This makes sense given the current market conditions and is a return to normal seasonal patterns. This can give prospective buyers a sense of stability and more confidence in their decision-making.
Median Days on Market Decrease
The demand for housing continues to be high. In November 2023, homes lasted 52 days on the market. This is a decrease from 55 days in 2022. In some of the more specific markets like the Midwest, homes are lasting as low as 45 days on market. This reduction suggests that buyers are eager to make purchases, even amid affordability challenges. The ongoing decline in interest rates should mean continued competition for homes as we enter the start of 2024.
In conclusion, the housing market exhibits promising signs of recovery as we enter 2024. Declining interest rates, a decrease in the times homes spend on the market, and the increase in inventory all signal that 2024 will be a better year for the housing market.
Remember, the housing market is always changing. Keeping up-to-date with information including the current mortgage rates and any new products can help you make better, more informed decisions when it comes to buying a home.
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