MARKET January 10, 2024

Market Snapshot | December 2023

Monthly Recap

– Kansas City Association of Realtors
U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down 7.3% compared to the same period last year, as affordability challenges continue to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high. With rates having dropped more than a full percentage point since then, existing-home sales may continue to pick up in the months ahead.
Closed Sales decreased 5.9 percent for existing homes and 17.7 percent for new homes. Pending Sales increased 7.6 percent for existing homes and 25.0 percent for new homes. Inventory decreased 6.2 percent for existing homes and 14.4 percent for new homes.
The Median Sales Price was up 6.4 percent to $266,000 for existing homes but decreased 6.5 percent to $503,061 for new homes. Days on Market increased 3.3 percent for existing homes and 54.9 percent for new homes. Supply increased 7.7 percent for existing homes but increased 7.7 percent for new homes.
Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers to choose from. Going into December there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9% from the same period last year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices remain high nationwide, with NAR reporting the median existing-home price rose 4% annually to $387,600 as of last measure, the fifth consecutive month of year-over-year price gains. Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.
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