Are more Americans looking to sell their homes?
Data from the National Association of Realtors showed that existing home sales jumped in November, and this could indicate that sellers are showing more willingness to get into the market.
NAR chief economist Lawrence Yun stated, “A marked turn can be expected as mortgage rates have plunged in recent weeks.”
Mortgage Bankers Association chief economist Mike Fratantoni said in a recent statement that, “With the positive news about the drop in inflation, and [the Federal Reserve policymakers] projections proclaiming a pivot towards rate cuts, the 30-year fixed mortgage rate reached its lowest level since June 2023, declining to 6.83 percent*.”
Further signs that more sellers are coming into the market? Listings on realtor.com in November were up 7.5% year-over-year, and the number of sellers adding their homes to the listing network appears to be sustainable.
How many of the home listings were ‘affordable’ in 2023?
Analysis from a major real estate broker and mortgage originator showed that 16% of home listings in the U.S. were considered ‘affordable’. This was down from a 21% mark set in 2022, and an all-time low since data on affordability started being tracked in 2023.
The good news? Given the new home projects that are getting built or scheduled to start in early 2024 and the potential for home prices to cool in certain markets, we may see improvement in affordability in 2024.
Redfin senior economist Elijah de la Campa said, “Mortgage rates are under 7% for the first time in months, home price growth is slowing as lower rates prompt more people to list their homes, and overall inflation continues to cool. We’ll likely see a jump in home purchases in the new year as buyers take advantage of lower mortgage rates and more listings after the holidays.”
Which markets are seeing homebuyers get deals?
According to a recent report from Realtor.com there are three markets that are seeing homebuyers find homes with median prices much lower than the national average. Which markets are they? Lafayette, IN, Canton, OH, and Erie, PA rank among the most affordable housing markets in the country.
Homes nationwide posted a median of 52 days on the market. In Lafayette? Only 37 days. The median number of days on the market for Canton was just 35, and homes in the Erie area spent 42 days on the market. Not only are these markets affordable, but they’re also moving quickly.
Realtor.com economist Hannah Jones stated, “Prices increased only slightly nationwide in November, but the month’s hottest markets saw more substantial price growth due to high demand.”
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