Homebuyers who brave the cold to get out there and shop for homes right are finding something strange, really good news!
First up, increasing inventory.
A new report has found that 7.5% more home sellers listed their homes in November than this same month last year. It’s actually “the first-time inventory has increased this late in the fall season since our records commenced in 2016. This turnaround is a big deal, “ending a four-month streak of annual inventory declines,”. Plus, seasonal housing stock in November increased by 2.4% above October levels, which is another first.
November saw the first annual growth in newly listed homes in 17 months. 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 home sellers are finally entering the market.
While many sellers last year sat on the sidelines waiting for mortgage rates to drop before entering the market, that wait-and-see approach seems to have turned a corner. Now, many sellers have given up hope that rates will subside anytime soon.
Additionally, Fannie Mae’s Home Purchase Sentiment Index, found a 17% increase in respondents who believed it was a good time to sell in October compared with reports from last year.
It is possible that, compared to last year, sellers have less hope that mortgage rates will fall sufficiently enough over the next year and thus are not temporarily putting off plans to sell in order to wait.
Still, sellers seem to understand the predicament buyers are in with rates as they are—and have responded with price reductions, slashing prices with more momentum than is typical this time of year.
So far, it seems this tactic has paid off. In November, homes spent less days on average on the market, which is three fewer days than this month last year.
The 12 Reasons You Should List Your Home For Sale During The Holidays
Biggest mortgage rate drop since pandemic sparks optimism.
A big drop in mortgage rates has resulted in holiday rejoicing for hopeful buyers.
Mortgage rates registered their biggest one-day drop in nearly four years last week following an encouraging inflation report that convinced bond market investors the Federal Reserve is done hiking rates and may reverse course in the spring.
Homebuyer demand for purchase mortgages picked up for the second week in a row, even before the latest drop-in mortgage rates, according to a weekly survey of lenders by the Mortgage Bankers Association (MBA).
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.
In fact, in November, the 50 largest metro areas in the U.S. saw a decrease in homes for sale by 4.3% compared with this same month last year.
Still, things are starting to look up, with inventory increasing in November in 20 out of 50 of the largest metros compared with last year.
Posted by Cary W Porter on
Leave A Comment