Mortgage Rate Drops Begin to Encourage Market Activity
Net New Listing and Contract Volume Marginally Up Versus December 2022
Interest Rate Shock Continues to Keep Inventory at Historically Low Levels
SAN FRANCISCO–(BUSINESS WIRE)–HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its December Market Pulse Report, showing that activity in terms of net new listings placed on the market is up 5% versus December 2022.
With the Federal Reserve keeping rates steady in December and mortgage rates dropping slightly, affordability has marginally improved. As a result, the market saw the first signs of positive activity in terms of both net new listings and properties under contract. Cooling inflation and anticipated rate cuts this year signal further positive momentum is to come. However, given inventory remains at historically low levels, sales growth is expected to be gradual and modest.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
“The slight increase in December listings indicates the impact of lower mortgage rates is beginning to trickle down into the market which comes as an optimistic sign as we head into the new year. With that said, any market turns are likely to be slow. The mortgage rate lock-in effect is going to keep many would-be sellers who secured pre-pandemic mortgage rates of sub 5% little incentive to move, meaning low inventory will be a continuing trend. As we enter the year ahead, promising signs that the Federal Reserve will cut rates persist, which will provide at least some relief for homebuyers looking to purchase in 2024.”
Key Takeaways:
- Over the last 52 weeks, 2,504,407 net new listings were placed on the market, and 2,589,823 properties went under contract. This represents a decrease of 18.1% and 13.5%, respectively versus 2022.
- For the month of December 2023, 110,572 net new listings were placed on the market, and 183,184 properties went under contract. This represents an increase of 5.0% and 7.0%, respectively, versus December 2022.
- The increase in net new listings was driven by a 0.8% decrease in new listing volume that was offset by a larger 9.5% decrease in removals compared to December 2022.
- Median days on market stands at 51. This is down 5.6% from where it was one year prior at 54 days on market.
- The median price of all single-family listings in the US was $424,729 and the median closed price was $394,223. On a year-over-year basis, the median price of all single-family listings is up 3.1% and the median price of closed listings is up 5.6%. Month-over-month, the median price of single-family listings is down 1.2% and the median price of closed listings is down 0.5%.
Methodology
The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing data between December 2022 and December 2023.
About HouseCanary
Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.
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