In the housing market landscape of 2024, active listings have seen a remarkable surge, closing the year with a 12% increase compared to the previous year. This uptick is largely attributed to homes taking longer to sell, leading to an accumulation in supply.
The four-week period ending December 22, 2024, highlighted key indicators that showcase the current state of the housing market. Of particular note is the median sale price, which has risen by 6% to $383,725, while the median asking price has increased 5% to $376,000. These figures reflect a market adjusting to various pressures, including lingering homes causing a backlog.
The median monthly mortgage payment has also seen a rise, now standing at $2,519 per month with a 6.85% mortgage rate, further impacting potential buyers’ decisions. Pending sales, however, have decreased by 3.4% to 58,267, marking the first decline in three months and serving as a potential indicator of shifting market conditions.
New listings have remained steady with no significant change, while active listings reached 954,703, marking the smallest increase since March. These dynamics suggest a market moving towards equilibrium, with a months-of-supply figure at four months, hinting at more balanced market conditions.
Touring activity reported a decline of 52.9% from the start of the year, compared to 57.7% in the previous year, signaling a decrease in active homebuyer engagement. Concurrently, Google searches for ‘home for sale’ increased slightly by 1.5% from the previous month but were down 26.1% from last year, indicating fluctuating interest levels.
Metro areas displayed varied trends, with some experiencing significant changes. Metropolitan areas like Philadelphia and Milwaukee reported the most substantial increases in median sale price, at 17.1% and 14.3% respectively, whereas metros such as San Antonio and Orlando saw notable decreases in new listings.
The average sale-to-list price ratio stood at 98.4%, a marginal decrease of 0.1 points from the previous year, suggesting sellers may be slightly more inclined to negotiate on price. Meanwhile, only 23.3% of homes sold above the list price, down from 25.1% the previous year, reflecting potential buyer caution.
The end of 2024 sees the housing market in a state of adjustment. With rising active listings and fluctuating buyer engagement, the market is slowly shifting towards stability. However, regional variations continue to highlight the diverse conditions across the country, presenting unique challenges and opportunities for buyers and sellers alike.
Source: Redfin
