Published Date 12/4/2023
If you’re desperate to buy a home, Realtor.com’s Jillian Pretzel says homebuyers who brave the cold to get out there and shop for homes right now face a strange mix of really good as well as not-so-great news.
“First, the good: More homes are finally coming on the market,” she says. “The bad? The cost to finance that purchase has hit a new high. A new report by Realtor.com® has found that 7.5% more home sellers listed their homes in November than this same month last year.
Realtor.com Chief Economist Danielle Hale reports, “November saw the first annual growth in newly listed homes in 17 months.” She also says that if you look at total inventory—of both new listings and old—that’s improved, too, with the typical day in November enjoying 0.7% more homes for sale than a year earlier.
Why is this such a big deal? According to Hale, it “ends a four-month streak of annual inventory declines.” says Hale. To boot, seasonal housing stock in November increased by 2.4% above October levels, which is another first. “It’s actually “the first time inventory has increased this late in the fall season since our records commenced in 2016,” Hale points out.
Pricing and interest rates are a whole other ball game, however. “While this fresh infusion of real estate listings is a welcome gift for buyers, they will have to pay dearly for them,” says Pretzel. “In November, homes were priced at a median of $420,000. That’s down from October’s $425,000, and up by just 1% compared with November of last year.”
Although Hale maintains that the nation’s median list price has remained “relatively stable,” November’s higher mortgage rates compared with last year have increased the monthly cost of a typical home by 7.9%—roughly $172 more per month compared with a year earlier, which Hale says is a new record since Realtor.com began tracking this data in mid-2016.
Bottom line? It means the typical homebuyer or combined homebuyer income today would need to hit around $118,000 per year to comfortably afford those house payments, up $7,100 from just a year ago.
Another tidbit of news: many sellers who waited on the sidelines with a wait-and-see approach seem to have turned a corner. Giving up hope that rates will subside anytime soon, they’re out there looking again.
“Many consumers still expect mortgage rates to rise over the next year,” Hale says. Some home sellers might be looking to close the deal before rates go up further. She also cites Fannie Mae’s Home Purchase Sentiment Index, which found a 17% increase in respondents who believed it was a good time to sell in October compared with reports from last year.
Sellers, however, as responding to this interest rate predicament buyers with price reductions, slashing prices with “more momentum than is typical this time of year,” according to Hale.
Despite this rise in new listings, historically speaking, the pickings are still slim compared with the pre-pandemic days. Total housing inventory is still 37.8% below typical 2017 to 2019 levels.
Realtor, TBWS
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
Superior Funding Corporation is a Massachusetts Mortgage Company. Massachusetts Mortgage Lender and Broker License: MC2972, NMLS ID: 2972.
NMLS: 11481
Superior Funding Corporation
343 Washington Street, Newton MA
Company NMLS: 2972
Office: 617-938-3900
Email: rshulman@sfcorp.net
Web: http://sfcorp.net
NMLS: 11481
6/24/2024
Existing-home sales prices climbed to a record high in May, as home buyers...... view more
6/17/2024
There’s a buyer for every home. Or is there?... view more
6/12/2024
The improvement in rates began yesterday on the very strong 10 year note auction... view more
6/10/2024
Price per square foot. It’s a measure used mostly in the construction industry. ... view more
6/5/2024
ADP reported May private jobs weaker than forecasts at 152K against estimates of... view more
6/3/2024
Seems anyone and everyone interested in real estate is getting whiplash trying t... view more
5/29/2024
The markets got hit hard yesterday on the very weak 2 year and 5 year auctions..... view more
5/22/2024
The 10 year note began up 4 bps from yesterday’s decline of 3 bps. MBS prices ye... view more
5/20/2024
Value is — and always has been — in the eye of the beholder especially with the... view more
5/15/2024
Traders and markets waited two weeks for current inflation data, yesterday April... view more