The American real estate industry mirrored the end-year slowdown seen in December 2022, setting a familiar scene for realtors and home buyers, according to the RE/MAX National Housing Report for December 2023. Several key findings and parallels from the month include:
Key Findings
- A 7.3% year-on-year, and 2.3% drop from November, in home sales.
- A 0.7% inventory decline compared to December 2022, a significant 10.4% drop from November.
- New listings saw a 2.7% year-on-year increase but a substantial decrease of 24.3% compared to November.
- The median sold price of $400,000 saw a 3.9% increase from December 2022 but a 1.2% dip from November.
- An average of 47 days on the market for homes sold in December, a seven-day increase from November.
- A drop to 2.5 months in the supply of inventory from 2.6 in November.
A Challenging Market
The figures indicate a difficult market in 2023, triggered by high mortgage rates and low inventory. However, the new year heralds potential relief with likely increases in new construction projects and a decrease in mortgage rates. These factors may invite more move-up buyers, creating opportunities for first-time buyers. Interestingly, the landscape reveals a pent-up demand, largely from the younger demographic.
Varied Local Market Results
With local market results for December reflecting variations across different metropolitan areas, here are some highlights:
- New listings in Bozeman, MT increased by an impressive 75.6%, while Manchester, NH experienced a decline of 31.3%.
- Closed transactions in Coeur d’Alene, ID rose by 20.7%, but Providence, RI saw a fall of 18.4%.
- The median sales prices shot up by 19.6% in Trenton, NJ, while New Orleans, LA saw a decrease of 6.3%.
- At a close-to-list price ratio, Miami, FL stood at 95%, while in contrast, Hartford, CT had a ratio of 102%.
- The average days on the market in Baltimore, MD was 17, but a high of 94 days was recorded in Coeur d’Alene, ID.
- The months’ supply of inventory in Trenton, NJ dwindled to 0.7, while Bozeman, MT witnessed a supply of an ample 5.4 months.
Why This Matters
The implications of these trends extend far beyond industry insiders. For homebuyers and sellers, understanding both the general market direction and their local market variations can significantly impact their decisions. With these data points in hand, they can make more informed decisions about when to buy or sell, and what to expect in terms of pricing, time on the market, and competitive demand.
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