Realtor.com® December Housing Report: Signs Point to Increases in Number of Home Listings and Stable Prices
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Insights
The recent uptick in housing inventory, as reported, suggests a shift towards a buyer's market, which could have implications for various stakeholders, including homebuilders, real estate agencies and mortgage lenders. The 4.4% year-over-year growth in active listings indicates increased supply, potentially alleviating the intense competition for homes seen in recent years. This increase could lead to price stabilization or even reductions in some markets, as evidenced by the price decreases in specific areas like San Jose and San Antonio.
For homebuilders, this could mean a more cautious approach to new constructions, focusing on markets where inventory levels remain low. Real estate agencies might see an increase in transactions as buyers take advantage of more options and potentially lower prices. Mortgage lenders could experience a mixed impact; while more listings might increase the number of mortgage applications, the current homeowners' low mortgage rates might reduce the number of refinancing deals.
The long-term implications for the stock market could be sector-specific. Homebuilding company stocks might face pressure if the increased supply leads to reduced demand for new homes. In contrast, real estate service companies could benefit from higher transaction volumes. Investors should closely monitor inventory levels and regional market dynamics for a comprehensive understanding of potential impacts.
The report's indication of a more active housing market with growing inventory levels could be a precursor to changes in consumer spending patterns. As mortgage rates have been trending downward, there is potential for increased home-buying activity, which could stimulate related sectors such as home furnishings, appliances and home improvement services. Consumer discretionary stocks in these sectors could see a positive impact as demand for their products and services may rise in tandem with home sales.
However, it's important to consider the potential for a cooling housing market to affect financial institutions with significant mortgage portfolios. If the trend of increased inventory and stable or declining home prices continues, there could be implications for the quality of these assets. Financial institutions with large exposure to the housing market may need to adjust their risk assessments and provisions for loan losses accordingly.
Investors should also be aware of the impact of housing market trends on consumer confidence and the broader economy. A healthy and accessible housing market can contribute to positive consumer sentiment, which in turn can drive economic growth and support a bullish stock market environment.
The data provided on the housing market serves as an economic indicator, reflecting broader economic trends. The increase in active listings and the decrease in median days on market suggest a rebalancing of the housing market towards equilibrium after a period of supply constraints. This rebalancing could signal a moderation in the rapid price growth seen in recent years, which may contribute to controlling inflation in the housing sector.
Furthermore, the regional disparities in inventory change, with significant increases in places like Memphis and New Orleans, highlight the importance of analyzing local economic conditions. Areas with growing inventories may experience a shift in bargaining power from sellers to buyers, potentially leading to more negotiated transactions and a slowdown in price appreciation.
The overall economic impact of these trends depends on the interplay between housing affordability, consumer spending and the Federal Reserve's monetary policy. If the trend towards increasing inventory and stabilizing prices continues, it could provide the Federal Reserve with more flexibility in managing interest rates without exacerbating a housing shortage, ultimately influencing stock market conditions and investor confidence.
In December the Number of Homes Actively for Sale Grew
"Across the
On the Up and Up
Homebuyers typically avoid big moves during the December holiday season unless they absolutely must sell or buy, leading to generally different real estate activity than what is experienced in the peak summer season. Though the market is still not where it was pre-pandemic as active inventory sits
December 2023 Housing Metrics – National
Metric | Change over Dec 2022 | Change over Dec 2019 |
Median listing price | + | +36.7 % |
Active listings | +4.9 % | -30.9 % |
New listings | +9.1 % | -11.8 % |
Median days on market | -4 days (to 61 days) | -16 days |
Share of active listings with price reductions | -1.4 percentage points (to | +2.2 percentage points |
Southern Belles
When examining the 50 largest metros, 23 experienced increased inventory levels year-over-year, with
Prices Continue to Stabilize and Properties Move Faster
The median price of homes for sale in December remained relatively stable compared to the same time last year, growing by
When it comes to days on market, homes are moving quicker than before. Generally, homes spent 61 days on the market, which is four days shorter than December 2022 and about two weeks shorter than before the COVID-19 pandemic.
Additional details and full analysis of the market inventory levels, price fluctuations and stabilization as well as days on market tallies can be found in the Realtor.com® December Monthly Housing Report.
December 2023 Housing Overview by Top 50 Largest Metros
Metro Area | Median Listing Price | Median Listing Price YoY | Median Listing Price per Sq. Ft. YoY | Active Listing Count YoY | New Listing Count YoY | Median Days on Market | Median Days on Market Y-Y (Days) | Price Reduced Share | Price Reduced Share Y-Y (Percentage Points) |
3.8 % | 4.2 % | -3.6 % | -5.0 % | 53 | -6 | 13.0 % | -3.9 pp | ||
2.9 % | 2.3 % | 3.4 % | 20.9 % | 74 | 2 | 20.0 % | -5.6 pp | ||
4.5 % | 4.9 % | -4.8 % | -3.6 % | 46 | -5 | 13.0 % | 0.6 pp | ||
4.2 % | 6.1 % | 13.8 % | -11.1 % | 60 | -3 | 14.4 % | -0.1 pp | ||
6.8 % | 9.9 % | -7.8 % | 9.9 % | 53 | -5 | 9.1 % | -2.1 pp | ||
8.3 % | 10.0 % | -2.5 % | 8.8 % | 59 | -2 | 5.5 % | -1.6 pp | ||
0.9 % | 5.9 % | -7.6 % | -3.4 % | 53 | -4 | 12.9 % | -4 pp | ||
8.4 % | 6.0 % | -18.2 % | -7.3 % | 51 | -3 | 11.2 % | 0 pp | ||
3.1 % | 6.0 % | 17.5 % | 10.3 % | 44 | -7 | 11.5 % | 1.9 pp | ||
15.8 % | 9.3 % | -3.1 % | 16.1 % | 51 | -5 | 13.4 % | -1.4 pp | ||
9.1 % | 6.2 % | 8.6 % | -7.3 % | 49 | -1 | 18.0 % | 1 pp | ||
-0.9 % | 1.2 % | 6.4 % | 4.4 % | 58 | -1 | 17.4 % | -2.3 pp | ||
1.7 % | 6.3 % | 7.1 % | 3.1 % | 61 | 2 | 12.6 % | -5.8 pp | ||
2.3 % | 5.5 % | -15.2 % | -10.5 % | 50 | -2 | 12.3 % | -5.7 pp | ||
6.8 % | 6.6 % | -14.7 % | 11.5 % | 45 | -10 | 6.7 % | -0.8 pp | ||
0.0 % | 1.7 % | 6.7 % | 4.8 % | 56 | -3 | 13.2 % | -2.1 pp | ||
3.2 % | 6.2 % | 7.6 % | -7.3 % | 57 | 4 | 19.3 % | 0.4 pp | ||
4.8 % | 4.5 % | 2.5 % | 10.0 % | 61 | -3 | 14.8 % | -6.6 pp | ||
-2.5 % | 0.4 % | 0.0 % | 7.4 % | 64 | -7 | 9.9 % | -0.8 pp | ||
3.8 % | 3.3 % | -45.3 % | -11.3 % | 54 | -19 | 14.8 % | -5.9 pp | ||
17.6 % | 10.5 % | -18.2 % | 14.6 % | 54 | -7 | 7.5 % | -3.6 pp | ||
1.7 % | 4.8 % | 4.2 % | 8.4 % | 50 | -2 | 16.3 % | -0.9 pp | ||
-2.2 % | 3.6 % | 28.5 % | 35.7 % | 63 | 2 | 17.9 % | -0.2 pp | ||
-2.5 % | 2.8 % | 19.0 % | 13.5 % | 61 | -5 | 13.9 % | 0.1 pp | ||
-0.9 % | 3.4 % | 0.3 % | -5.2 % | 44 | -2 | 14.2 % | 2.9 pp | ||
5.1 % | 1.8 % | 2.6 % | 2.0 % | 55 | -3 | 10.4 % | -1.1 pp | ||
7.8 % | 5.9 % | 4.2 % | 0.2 % | 44 | -4 | 14.9 % | -3.4 pp | ||
1.9 % | 0.6 % | 25.5 % | 19.2 % | 78 | 3 | 11.3 % | 0 pp | ||
11.6 % | 16.5 % | -14.2 % | 3.4 % | 71 | -4 | 5.8 % | -1.1 pp | ||
-1.5 % | 0.1 % | 15.1 % | 27.3 % | 58 | -2 | 17.4 % | -1.9 pp | ||
2.1 % | 3.5 % | 16.7 % | 19.7 % | 58 | -9 | 16.1 % | -2.3 pp | ||
4.6 % | 6.3 % | -7.6 % | 1.6 % | 56 | -5 | 12.0 % | 0 pp | ||
10.9 % | 2.9 % | -23.2 % | -14.0 % | 53 | -16 | 20.9 % | -5.5 pp | ||
15.0 % | 8.8 % | -1.0 % | 6.5 % | 66 | -6 | 12.9 % | 1.3 pp | ||
1.7 % | 2.6 % | 7.5 % | 15.1 % | 66 | 1 | 12.1 % | -1.2 pp | ||
5.2 % | 0.9 % | -3.8 % | -5.3 % | 45 | 0 | 8.3 % | -1.7 pp | ||
-0.1 % | 4.4 % | -17.7 % | -5.7 % | 63 | -5 | 10.2 % | -6.8 pp | ||
13.7 % | 8.0 % | 4.6 % | -3.8 % | 54 | 1 | 9.0 % | -3.4 pp | ||
2.5 % | 6.2 % | -17.0 % | 13.8 % | 59 | -7 | 10.8 % | -4.1 pp | ||
8.7 % | 8.1 % | -4.9 % | 7.5 % | 35 | -3 | 8.9 % | -0.3 pp | ||
6.4 % | 4.6 % | -19.5 % | 1.0 % | 52 | -11 | 10.9 % | -4.2 pp | ||
-3.9 % | -0.6 % | 20.9 % | 15.3 % | 68 | 1 | 18.9 % | -1.9 pp | ||
9.0 % | 14.3 % | -17.1 % | 10.3 % | 44 | -10 | 10.7 % | -2.8 pp | ||
0.5 % | 0.5 % | -15.3 % | 5.2 % | 58 | -3 | 7.4 % | -2.5 pp | ||
-7.1 % | -0.4 % | -12.9 % | 18.7 % | 43 | -10 | 6.1 % | -6.7 pp | ||
3.3 % | 5.0 % | -8.4 % | 27.3 % | 57 | -2 | 9.3 % | -6.3 pp | ||
2.2 % | 3.6 % | 10.1 % | 24.1 % | 53 | 0 | 11.4 % | -0.8 pp | ||
2.7 % | 5.4 % | 13.5 % | 6.7 % | 57 | -1 | 19.7 % | -3.3 pp | ||
5.3 % | 7.0 % | 3.7 % | -15.5 % | 45 | -4 | 16.1 % | 1.7 pp | ||
4.4 % | 6.2 % | -15.0 % | 13.8 % | 50 | -4 | 9.8 % | -1.6 pp |
Methodology
Realtor.com® housing data as of December 2023. Listings include the active inventory of existing single-family homes and condos/townhomes/rowhomes/co-ops for the given level of geography on Realtor.com®; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com®. Realtor.com® data history goes back to July 2016. 50 largest
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SOURCE realtor.com
FAQ
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