December 2023 housing market report indicates an overall increase in housing supply, with some markets standing out for exceptionally fast home sales.
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Real Estate Trends: South Sees 7.7% Increase in Listings, Some Cities Witness Price Drops
Danielle Hale, the chief economist for Realtor.com, highlighted a positive development in the South, where there was a substantial 7.7% year-over-year increase in active listings. However, she cautioned that the overall supply still lags behind pre-pandemic levels. Almost half of the 50 largest metro areas saw year-over-year increases in inventory in December, with Memphis, New Orleans, and San Antonio experiencing the most significant boosts.
Interestingly, three cities—San Antonio, New Orleans, and Austin, Texas—saw drops in median listing prices since December 2022. Nationally, the median house price rose by 1.2%, reaching $410,000. Despite this increase, most markets still have lower inventory levels compared to the period between 2017 and 2019.
The report attributes these trends, in part, to the holiday season, during which fewer people traditionally engage in buying or selling homes. Despite this seasonal slowdown, nine of the top ten fastest-selling markets became even more accelerated in the past year, with homes spending fewer days on the market than before the pandemic. Rochester, New York, took the lead with homes averaging 35 days on the market, followed by San Jose, California, and Cincinnati, Ohio.
Housing Market Dynamics: Scarcity Spurs Quick Sales, Optimism Amid Mortgage Rate Fluctuations
The scarcity of available homes is a significant driver behind the rapid pace of sales. Even with new homes entering the market, the November report indicated a consistent trend of homebuyers actively seeking properties. Additionally, mortgage rates play a crucial role, as declining rates may incentivize more homeowners to sell. Hale expressed optimism, suggesting that if rates continue to improve, there might be an uptick in homeowners deciding to sell as affordability improves. However, a recent slight increase in rates has tempered this overall positive trajectory.
In essence, the report offers a hopeful perspective for both homebuyers and sellers in specific US cities, showcasing a rise in housing supply and expedited home sales. It underscores the persistent challenges in the housing market, the influence of the holiday season on real estate activities, and the pivotal role of mortgage rates in shaping homeowners’ decisions to sell.
