New Listing Volume Increased in December Indicating Positive Signs to Come in 2024, Latest HouseCanary Report Shows
With the Federal Reserve keeping rates steady in December and mortgage rates dropping slightly, affordability has marginally improved. As a result, the market saw the first signs of positive activity in terms of both net new listings and properties under contract. Cooling inflation and anticipated rate cuts this year signals further positive momentum is to come, however given that inventory remains at historically low levels, sales growth is expected to be gradual and modest.
The slight increase in December listing activity indicates the impact of lower mortgage rates is beginning to trickle down into the market which comes as an optimistic sign as we head into the new year. With that said, any market turns are likely to be slow. The mortgage rate lock-in effect is going to keep many would-be sellers who secured pre-pandemic mortgage rates of sub 5%, little incentive to move, meaning low inventory will be a continuing trend. As we enter the year ahead, promising signs that the Federal Reserve will cut rates persist which will provide at least some relief for homebuyers looking to purchase in 2024.
- For the month of December 2023, 110,572 net new listings were placed on the market which represents a 5.0% increase versus December 2022. Over the last 52 weeks there have been 2,504,407 net new listings placed on the market. This represents a 18.1% decrease versus the year prior. Broken out by price bins, the $0-$200k bin has accounted for 13.5% of net new listings over the last 52 weeks, the $200k-$400k bin at 38.9% of net new listings, the $400k-$600k bin at 23.6% of net new listings, the $600k-$1m bin at 15.8% of net new listings, and the $1m+ bin at 8.2% of net new listings.
- The total volume of net new listings over the last 52 weeks for the $0-$200k, $200k-$400k, $400k-$600k, $600k-$1m, and $1m+ price bins are down 19.9%, 17.2%, 19.7%, 17.9% and 14.3% compared to the year prior. For the month of December net new listing volume for the $0-$200k and $200k-$400k price bins are down 3.9% and 1.6%, respectively, while the $400k-$600k, $600k-$1m and $1m+ price bins are up 14.1%, 27.5% and 33.1%, respectively, compared to December 2022.
- For the month of December 2023 there were 183,184 listings that went under contract nationwide which is a 7.0% increase versus December 2022. Over the last 52 weeks, 2,589,823 properties have gone into contract. This represents a 13.5% decrease versus the year prior. Broken out by price bins, the $0-$200k bin has accounted for 14.2% of total contract volume over the last 52 weeks, the $200k-$400k bin at 39.5% of total contract volume, the $400k-$600k bin at 23.4% of total contract volume, the $600k-$1m bin at 15.4% of total contract volume, and the $1m+ bin at 7.5% of total contract volume.
- The total volume of listings going into contract over the last 52 weeks for the $0-$200k, $200k-$400k, $400k-$600k, $600k-$1m and $1m+ price bins are down 16.5%, 11.5%, 14.3%, 14.1% and 13.7% compared to the year prior. For the month of December, contract volume for the $0-$200k, $200k-$400k, $400k-$600k, $600k-$1m and $1m+ price bins are up 0.8%, 4.6%, 10.6%, 10.7% and 19.3% respectively, compared to December 2022.
- For the week ending December 29th 2023, the median price of all single-family listings in the US was $424,729 and the median closed price was $394,223. On a year-over-year basis, the median price of all single-family listings is up 3.1% and the median price of closed listings is up 5.6%. Month-over-month, the median price of single-family listings is down 1.2% and the median price of closed listings is down 0.5%.
- For the week ending December 29th 2023, the median price of all single-family rental listings in the US was $2,531. On a year-over-year basis, the median price of all single-family rental listings is up 3.1%. Month-over-month, the median price of single-family rental listings is down 0.3%.
