Housing Market Update: November 2024 Insights from Extreme Investor Network
As we approach the end of 2024, the housing market is showing signs of both opportunity and caution. According to a recent analysis by Redfin, the inventory landscape in November has shifted dramatically compared to previous months, revealing important trends that both buyers and sellers need to consider.
Increased Supply, But With a Catch
One of the most positive developments in the housing market is the significant increase in active listings. November 2024 saw a 12.1% rise in homes available for sale compared to the same month in 2023, marking the highest level of supply since 2020. While this increase may seem promising on the surface, a closer look reveals a troubling reality: much of this inventory is "stale," with 54.5% of homes remaining on the market for over 60 days. This represents a 50% increase in stale listings compared to the prior year and the highest percentage for any November since 2019.
Redfin agent Meme Loggins highlights the need for sellers to adjust their pricing strategies: “Homes that are priced well and in good condition are flying off the market within three to five days, whereas overpriced homes can linger for over three months.” Sellers should be keenly aware of market conditions, as fair pricing is essential to attract potential buyers given the current supply-demand dynamics.
The Impact of Mortgage Rates
Mortgage rates have remained a contentious issue in the housing market, recently surpassing the 7% mark and stabilizing there through the end of the year. High mortgage rates, combined with rising home prices—as reported by S&P CoreLogic Case-Shiller, which revealed a 3.6% year-over-year increase in October—are contributing to a challenging environment for both new and existing homebuyers.
The sentiment among consumers is shifting. Lawrence Yun, chief economist at the National Association of Realtors, notes that buyers are recalibrating their expectations around mortgage rates: "With rates consistently above 6% for the past two years, many buyers are no longer waiting for substantial decreases.”
Selling Season Challenges Ahead
Despite the new homes entering the market, the pace at which homes are selling has notably slowed. The typical home sale now takes about 43 days— the slowest November since 2019. This trend raises concerns for the early months of 2025, particularly as interest rates remain high. Additionally, the phenomenon of “seller lock-in” remains pervasive, with many homeowners reluctant to sell and give up their lower mortgage rates.
The lingering effect of this lock-in, as outlined in a report by CoreLogic, is a reluctance among renters to transition into homeownership due to persistent affordability challenges. This reluctance is exacerbated by not only high home prices but also increased costs associated with real estate brokerage and moving services.
Looking Forward: A New Normal?
Despite these challenges, there are signs of optimism. Pending home sales surged in November, reaching levels not seen in nearly two years, indicating a strengthened market interest, albeit from a low baseline. As the market adjusts to elevated interest rates, buyers are finding themselves in a more favorable negotiating position as the balance between buyers and sellers stabilizes.
For investors and homeowner aspirants navigating this complex landscape, staying informed and adaptable is key. Extreme Investor Network is committed to providing you with valuable insights and resources to help you make the best investment choices in this ever-evolving market.
In conclusion, while the current housing market poses its own set of challenges, opportunities remain for those willing to do the research and strategize accordingly. Whether you are considering entering the market as a buyer, thinking about selling your property, or simply seeking to understand these market dynamics, we’re here to help you navigate through it all. Stay connected with Extreme Investor Network for the latest updates and tailored advice to enhance your investing journey.