01/23/2024
National Real Estate Commentary
U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down 7.3% compared to the same period last year, as affordability challenges continue to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high. With rates having dropped more than a full percentage point since then, existing-home sales may continue to pick up in the months ahead.
Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers to choose from. Going into December there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9% from the same period last year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices remain high nationwide, with NAR reporting the median existing-home price rose 4% annually to $387,600 as of last measure, the fifth consecutive month of year-over-year price gains. Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.
December-Local Activity
Closed Sales decreased 7.9 percent for Residential homes and 10.5 percent for Condo homes. Pending Sales decreased 3.2 percent for Residential homes but increased 0.3 percent for Condo homes. Inventory decreased 8.8 percent for Residential homes but increased 4.0 percent for Condo homes.
The Median Sales Price increased 7.9 percent to $232,000 for Residential homes and 7.4 percent to $247,000 for Condo homes. Days on Market decreased 2.7 percent for Residential homes and 7.3 percent for Condo homes. Months Supply of Inventory remained flat for Residential homes but increased 11.1 percent for Condo homes.
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