Is the housing market in better shape now than a year ago?

Prairie Avenue Mansions in Chicago | mortgage rate news

What does the latest housing market data look like?

The team at Altos Research dug into the weekly housing market data. The overall state of the market is that it’s thawing, slowly, and should start 2024 in a better place than it was at the start of 2023.  

The median price of a single-family home in the U.S. this past week was $425,000. This is down slightly from the previous week and is in-line with the winter cool off. Prices have historically dipped during the winter, and it appears that the end of 2023 will continue this trend. However, home prices are up from $415,000 at the same time last year.

When it comes to price reductions, 38.3% of homes currently listed have seen a reduction in price. Normal levels are typically in the 33%-to-35% range, so the current market is seeing more cuts, but the pace is slowing.

Inventory has continued to cool into winter, but available options are 2% higher than they were at the same time last year.

Are homebuyers waiting for mortgage rates to fall?

A recent article from Kiplinger states that homebuyers are running out of patience with waiting for mortgage rates to fall.

The article pulled data from a survey published by Bank of America. According to the survey, fewer potential homebuyers are willing to wait for mortgage rates and prices to drop. Six months ago, 85% of potential homebuyers surveyed were willing to wait. Now? Only 62% of homebuyers are willing to wait.

How is the Chicago housing market shaping up for 2024?

The Chicago housing market was like a lot of major metro areas in 2023. Chicago suffered from low inventory and prices pushed higher. So, how is 2024 shaping up for Chicago? A recent Axios article detailed the current market, and offered guidance as to where the market could go in 2024.

While the current market has constricted as sellers take homes off the market into the winter, there are still opportunities in condos in outlying neighborhoods. While the market may not be very busy this winter, the Chicagoland area is still seen as a destination for young professionals.

As far as what will happen in 2024, the article highlighted a need for mortgage rates to cool before current homeowners look to list. There should be some loosening in 2024, but the article cautions homebuyers against expecting a dramatic change.

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