Our latest market watch report delves into the recent trends shaping the real estate landscape. Despite the traditionally quieter month of January, home prices continue to climb, accompanied by a notable uptick in existing home sales. This offers both challenges and opportunities for buyers and sellers alike.
A Glimpse of Hope in Existing Home Sales
Recent data from the National Association of Realtors (NAR) reveals a slight resurgence in the sales of existing homes, attributed to an increase in listings becoming available. Lawrence Yun, NAR’s chief economist, notes a balance forming between supply and demand, driven by modest increases in listings and homebuyers capitalizing on lower mortgage rates.
Trends in Existing-Home Sales
In January 2024, existing home sales saw a 3.1% month-over-month increase nationally, reaching an annual pace of 4.0 million homes. While this marks a 1.7% decrease year-over-year, regional variations were observed. The West and South experienced monthly increases of 4.3% and 4.0%, respectively, while the Northeast and Midwest saw more modest changes.
Home Prices: Continuing to Climb
The median sale price for existing homes reached $379,100 nationally in January, reflecting a 5.1% increase from the previous year and setting a record for January. All four major U.S. regions saw annual price increases, with the West leading at $572,100, up 6.3% from a year ago.
The Challenge of Low Housing Inventory
Despite a slight increase from December, the housing inventory remains low at 1.01 million units, underscoring a market short of the ideal supply needed for balance. Homeowners’ reluctance to sell, particularly those with low-rate mortgages, contributes to this challenge.
Key Takeaways for Homebuyers and Sellers
Prospective homebuyers face high prices and mortgage rates but benefit from a growing inventory of existing homes. Sellers enjoy high demand and limited supply but must navigate the implications of current mortgage rates. Schedule a free consultation on our website for personalized advice and options.
Stay informed and empowered as you navigate the dynamic real estate landscape.