The Housing Market is Heading Into 2025 with a worrying supply trend

There’s good news in the housing market to close out 2024: There’s a lot more supply. The bad news: a lot of that supply is stale, sitting unsold for much longer than usual.

Active Listings in November WHER 12.1% Higher Than They WERE in November 2023 and Hit the Highest Level Since 2020, According to a New Report from Redfin.

More than half of that homes (54.5%), however, had sat on the market for at least 60 days with out going under a contrast of sale. That is the highest share for any November since 2019 and is up near 50% from the year before, according to the report.

The typical home that did Go Under Contract Did So in 43 Days, According to Redfin, The Slowest November Pace Since 2019.

“A lot of listings on the market are either stale or uninhabitable. “I explain to sellers that their house will sit on the market if it’s not Fairly Price. Er Three Months . “

MortGage Rates Shot Over 7% in October and have mostly styed there through the end of the year, according to MortGage News DailyHome Prisis also Continue to Rise. The latest monthly price report from S & P Corelogic Case-Shiller, Released Tuesday, Showed Prisies Nationally up 3.6% in October compared with the same month a year month.

“With the latest data covering the period prior to the election, our national index has shown continued improvement,” said Brian Luke, Head of Commodities, Real and Digital Assets at s & P. ​​D.W Jones. “Removing the Political Uncertainly Risk has LED to an equity market rally; it will be telling should be telling should the similar sentiment Occur Among Homeowners.”

Pending home sales, which is a measure of signed contracts to purchase existing houses, rose in November in November both monthly and annually to the highhest level in Nearly Two Years, According to the Modi. They were, however, coming off a very slow base. The realtors claim interest rates are now at a new normal.

“Consures appeared to have Recalibrated Expectations Regarding Mortgage Rates and Are Taking Advantage of More available Inventory,” Said Lawrence Yun, Nar’s CHIF Economist. “Mortgage Rates Have Averaged Above 6% for the Past 24 months. Et Shifts Away from a Seller’s Market. “

The Slower Selling Pace, however, doesn’t bode well for the new year, especially with interest rates remaiing and elevated. There is stil demand, but renters are remains renters longer, according to another redfin report, due not only to higher home prices but Higher Price for Brokers and Molers.

The seller lock-in effect, where some sellers do’t want to trade their low Mortgage Rates in Order to Move, Did Start to Ease in 2024, According to a Year-Ed Report from Corelogic, But that was Mostly Due vents Or the need to tap accumulated equity. The added inventory didn’t move the needle much on sales, as costs studs in the way.

“Buyers are struggling to keep pace with housing pris. Environment for Both First-Time Buyers and those looking to move up the property ladder, “Wrote Selma Hepp, Corelogic’s Chief Economist, in the report.