In my latest blog update on the housing market, it’s evident that we’re grappling with a challenging scenario—low inventory, soaring sales prices, and interest rates hitting levels not seen in decades. The National Association of REALTORS® (NAR) reports a significant impact on existing-home sales, dropping 4.1% month-over-month and a staggering 14.6% year-over-year, marking the slowest pace since August 2010. As potential buyers face the burden of rising homeownership costs, many are adopting a wait-and-see approach, hoping for a dip in both mortgage rates and home prices.
Breaking down the numbers, Single Family home listings experienced a sharp decline of 28.9%, while Condominium homes saw a contrasting increase of 20.9%. Pending sales mirrored the trend, with Single Family homes dropping by 10.8% and Condominium homes by 11.4%. The inventory landscape also paints a divergent picture, with a 16.0% decrease for Single Family homes but a 40.7% increase for Condominium homes.
The median sales price tells a tale of its own, climbing by 7.3% to reach $1,100,000 for Single Family homes and 4.7% to $890,000 for Condominium homes. However, the market dynamics are reflected in the Days on Market metric, showing a 28.4% decrease for Single Family homes and a 29.3% increase for Condominium homes. The Months Supply of Inventory increased by 8.1% for Single Family homes and a staggering 133.3% for Condominium homes.
Nationwide, inventory remains at historically low levels, with a mere 1.15 million homes for sale in November—a 5.7% decline compared to the same period last year, resulting in a 3.6 months’ supply at the current sales pace. Despite the slowdown in sales, the scarcity of available properties continues to exert upward pressure on home prices. NAR reports a 3.4% increase in the U.S. median existing-home sales price from a year ago, reaching an all-time high of $391,800 for the month, with consistent annual price gains across all four regions of the country. It’s a complex real estate landscape, and navigating it requires a careful balance between market trends and individual buyer and seller considerations.
