Housing Market Update:
In the latest report from the National Association of REALTORS® (NAR), it was noted that existing-home sales in the U.S. experienced a 1.0% decrease month-over-month and a 6.2% decrease year-over-year. However, pending sales saw a significant 8.3% increase from the previous month, marking the largest gain since June 2020. NAR is forecasting a 13% increase in existing-home sales for this year compared to 2023, as mortgage rates have decreased notably from their peak last fall, prompting more homebuyers to enter the market.
When analyzing the housing market, it was observed that closed sales decreased by 5.9% for detached homes, while they increased by 30.1% for attached homes. Similarly, pending sales decreased by 1.5% for detached homes but increased by 18.6% for attached homes. The median sales price experienced a 19.2% increase to $1,100,000 for detached homes and a 6.3% increase to $680,000 for attached homes. Additionally, days on the market decreased by 19.5% for detached homes and 42.2% for attached homes. The supply also decreased, with a 22.2% decline for detached homes and a 25.0% decline for attached homes.
Despite the somewhat subdued sales activity, the persistent shortage of housing supply has contributed to an increase in home values nationwide. The median existing-home price rose by 4.4% year-over-year to $382,600, according to NAR. The total unsold inventory heading into January was at 1 million units, representing an 11.5% decline from the previous month and equating to a 3.2 months’ supply at the current sales pace. However, listing activity has started to pick up nationally, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.
Contact me for further updates and insights on the evolving housing market.
