In December, the number of homes actively for sale in the real estate market saw a significant 4.4% year-over-year growth, indicating a more active market and higher levels of inventory for prospective buyers, according to the Realtor.com December Monthly Housing Trends Report released today. This marks the first time since May 2023 that home shoppers are witnessing an increase in the number of unsold homes.
As mortgage rates have been on a downward trend since November, Realtor.com predicts a positive impact on home-selling sentiment. This, in turn, may lead to more new listings entering the market, offering buyers a wider range of options.
Chief Economist Danielle Hale pointed out that inventory levels across the US are improving, with the South experiencing a 7.7% increase in active listings compared to the previous year. Hale remains optimistic about the direction of inventory levels but highlights that the number of homes on the market is still relatively low compared to pre-pandemic levels. Some homeowners may be awaiting lower rates before considering selling or moving.
Although December is typically a quieter period for real estate activity due to the holiday season, home sellers were more active in December 2023 compared to the previous year. There was a 9.1% increase in newly listed homes, indicating a positive trend. While active inventory currently sits 34.3% below typical levels seen between 2017 and 2019, the decline in inventory from November to December was more modest than usual, with only a 5.5% decrease.
In terms of pricing, the median price of homes for sale in December remained relatively stable compared to the same time last year, with a slight increase of 1.2%. However, some regions experienced notable decreases, including San Jose (-7.1%), San Antonio (-3.9%), and Memphis (-2.5%).
Properties are also moving faster in today’s market, with homes spending an average of 61 days on the market, four days shorter than in December 2022 and about two weeks shorter than before the COVID-19 pandemic.
The full analysis of market inventory levels, price fluctuations, stability, and days on market can be found in the Realtor.com December Monthly Housing Report.
Realtor.com, an open real estate marketplace, has been a trusted guide for consumers for over 25 years. Through its website and mobile apps, Realtor.com empowers individuals to find their way home by breaking down barriers, providing expert insights and guidance, and facilitating the right connections. Realtor.com is a trusted partner for professionals in the real estate industry, offering consumer connections and branding solutions to support their business growth.
In conclusion, the December Housing Report by Realtor.com points to positive signs in the real estate market, including an increase in the number of home listings and stable prices. With mortgage rates on a downward trend, prospective buyers may have more options to choose from in the coming months. However, inventory levels are still below pre-pandemic levels, and some homeowners may be holding out for even lower rates before considering selling their homes.
