by calculated risk May 10, 2024 12:37:00 PM
In today’s ‘Calculated Risk Real Estate’ newsletter: Part 1: Current state of the housing market; overview as of mid-May 2024
A brief excerpt:
Our mid-May two-part overview provides a snapshot of the current housing market.
I always prefer to start with inventory because that’s usually where I start. tell a story!
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This is a graph of new properties on Realtor.com. April 2024 Housing Market Trend Monthly Report The new listing rate in April was 12.2% compared to the previous year. This remains well below pre-pandemic levels. From Realtor.com:
However, the number of sellers increased as the number of newly listed homes rose 12.2% year-on-year in April, matching last month’s growth rate, due to a boost in overall inventory, which has been a drag on sales for the past few years. . This marks the sixth consecutive month of increased listing activity after 17 consecutive months of decline.
Be aware of the seasonality of new properties. Seasonally, December and January have the lowest number of new listings of the year, followed by February and November. Although the number of new listings in 2024 is expected to increase compared to the previous year, it remains below normal levels.
There will always be people who need to be sold due to the so-called 3Ds (death, divorce, illness). Also, at certain times, homeowners may need to sell due to unemployment or excessive debt (both of which are less of a problem at the moment).
And some homeowners want to sell for a variety of reasons. Upsizing (more kids), downsizing, moving for a new job, moving to a better home or location (moving buyers), etc. This is part of the ‘want to sell’ group who have been trapped in pension handcuffs in recent years as current mortgage rates are around 3% and higher new mortgage rates make it harder to move financially. Must exceed 7%.
However, time is an important factor for this group of people who want to sell, and some will eventually take the plunge. Perhaps that’s why we’re seeing even more new listings now.
There’s a lot more to this article.
