Months of inventory jumped to 3.5 in November, reflecting that although new listings are down 17% from October 2023, the sales pace is still leaving existing inventory at its highest level in 3 years. The main issue here is the number of closed sales sitting at 26% below what it was year-to-date.
Although the average 30-year fixed mortgage rate fell by about 0.5% last week following the Federal Reserve's decision to hold its baseline rates, the overall increase in interest rates has not corresponded with commensurate price reductions. This interest rate environment makes Buyers want to see the value more than ever, and thus, properties that are not priced well are lingering.
Most folks predict that 2024 will bring further interest rate reductions, but there is no crystal ball, and folks who need to buy now are looking for properties that meet their needs for the long run and hoping to get them at a discount to make up for the cost of financing. Lastly, as is always the case, quality properties in good locations are still getting lots of attention and, in some instances, garnering multiple offers.
View the most recent market action report here>>
For those of you who prefer a little more action in your market action report, let us know how you like this new video overview>>