Although U.S. home prices remained stable in 2023, sales volume in the housing market sharply declined. Consumers care about home prices and mortgage interest rates. The industry is focused on transaction volume.
The industry has been in a deep housing recession this year. But if we’re lucky with mortgage rates, we could be in the depths of a housing recession right now. Or does the continued lack of affordable housing mean fewer people will continue to buy homes?
To understand the weekly status of the housing market, video On top of that.
Don’t have time? Below are some quick takeaways from our latest data dive. Altos Research.
Inventory continues to increase
567,000 single-family homes are on the market. As expected, it rose by 0.7% from last week. Housing inventory. Due to the season, growth is rare in November, but it seems to be almost at its peak.
Remember Artos’s law. As mortgage rates rise, the inventory will increase in he 2024. When interest rates fall, inventories will again fall.
Additionally, there were 62,000 new listings this week, 9,000 of which are already under contract. The current number of sellers is the same as last year, indicating that further declines in home sales due to supply constraints are unlikely.
Transaction volume no longer decreased compared to the previous year
Pending contract sales were down compared to last year through October. The trajectories are now the same.
Additionally, 39.2% of homes on the market have received price reductions. This means the market looks slightly more stable than in Q4 2022.
We know how sensitive consumers are to changes in mortgage rates. When interest rates spike, demand for mortgages is affected.
Housing prices remain steady
House prices remain 2% higher than last year and are expected to end the year at that level.
The median price for a single-family home is currently $430,000.
