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"November 2024 Real Estate Market Shift: Rising Inventory Levels and What They Mean for You"
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As we approach the end of 2024, the real estate market is experiencing notable shifts, particularly in housing inventory levels. After a prolonged period of limited supply, recent data indicates a significant increase in available homes, offering a more balanced landscape for buyers and sellers alike.
National Inventory Trends
In October 2024, the housing market witnessed its highest inventory levels since 2019, with a 29.2% increase in homes for sale compared to the previous year. This surge is evident across various regions, including former pandemic hotspots like Austin, Memphis, and Orlando. The influx of listings is partly attributed to a dip in mortgage rates earlier in the year, which encouraged more homeowners to list their properties. Despite the increased supply, national median home prices have remained stable at $424,950, though the price per square foot has risen by 2.1% year-over-year. Homes are also staying on the market longer, averaging 58 days, providing buyers with more time to make decisions.
Regional Highlights
Certain metropolitan areas have experienced remarkable changes in inventory. For instance, Melbourne reported a record number of homes for sale, the highest since 2012, with listings increasing by 16% compared to the previous year. This surge offers buyers more options and reduces the urgency to purchase. The trend is largely due to many homeowners and landlords exiting the market, influenced by rising land taxes and interest rates.
Similarly, in the United States, cities like Seattle, Anaheim, and Sacramento have seen a rise in new listings as of October, prompting buyers to take advantage of the increased supply and slightly lower FHA rates.
Impact on Buyers and Sellers
The increase in housing inventory has several implications:
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For Buyers: More available homes mean greater choice and potentially less competition, allowing for more thoughtful decision-making and better negotiation opportunities.
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For Sellers: While increased inventory can lead to more competition among sellers, well-priced and well-presented homes continue to attract strong interest.
Market Dynamics
The current market dynamics are influenced by several factors:
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Mortgage Rates: Despite rates nearing 7%, homebuyers, especially first-timers, are re-entering the market. Increased for-sale listings have spurred mortgage applications, which rose by 1.7% for the week ending November 15. The purchase index increased by 2%, driven by a rise in conventional and FHA-backed mortgages.
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Seasonal Shifts: Traditionally, the spring season sees the highest home-sales activity. However, rising inventory levels have prompted some buyers to return to the market in the fall, indicating a flexible market with growing inventories.
Looking Ahead
As we move into the final months of 2024, the real estate market appears to be stabilizing. The increase in housing inventory provides a more balanced environment, benefiting both buyers and sellers. While challenges such as affordability and interest rates remain, the current trends offer a more optimistic outlook for the housing market.
In conclusion, the rise in housing inventory in November 2024 marks a significant shift in the real estate landscape. This change offers new opportunities and considerations for all market participants, signaling a move towards a more balanced and dynamic housing market.