Realtor.com® January Housing Report: January 2024 Marks the Third Consecutive Month of Annual Inventory Growth
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Insights
The recent uptick in newly listed homes for sale, showing a 2.8% increase compared to the previous year, suggests a subtle shift in the housing market dynamics. This change could be indicative of a higher willingness among homeowners to sell, potentially due to improved market conditions or personal circumstances influenced by the current economic climate. The 7.9% rise in active listings is another sign of market vitality, as it may alleviate some of the inventory shortages that have been driving up home prices in recent years.
However, the relatively stable median listing price growth of 1.4% year-over-year reflects a market that is possibly reaching an equilibrium after the significant price surges witnessed during the pandemic. This stabilization may be beneficial for potential buyers who have been priced out of the market in the past. The reduction in median days on market, now lower than pre-pandemic levels, indicates continued buyer demand and could signal a competitive market for desirable properties.
The housing market is a critical economic indicator, often correlated with consumer confidence and spending. The reported increase in housing inventory and the controlled price growth are important metrics for investors to consider. From a financial perspective, these factors suggest that the housing market is not overheating, which can be a positive sign for the overall economy, potentially reducing fears of a bubble. This balance could lead to a more sustainable growth trajectory for real estate companies and related sectors.
Furthermore, the report's mention of mortgage rates and their impact on buyer purchasing power is crucial. While rates have dropped since last fall, their future trajectory is uncertain. Investors should monitor this closely as changes in interest rates can significantly affect housing affordability, mortgage lending and the profitability of financial institutions with real estate exposure.
The housing market often acts as a bellwether for broader economic trends and the data presented suggests a nuanced economic environment. The moderate increase in median listing prices, coupled with a substantial inventory boost, points to a market that is responding to both supply and demand pressures. The decrease in the share of active listings with price reductions may indicate seller confidence, reflecting an economy that is still robust enough to support current pricing levels.
However, regional variations, such as the significant growth in new listings in certain metros contrasted with declines in others, highlight the heterogeneity of economic recovery across different areas. This could imply varying local economic conditions, employment rates and consumer confidence levels, which are essential for understanding the health of the national economy.
Data Showed a
"We are seeing increases in inventory and, importantly, gains in newly listed homes for sale indicating sellers are more ready to make moves. Time on market fell, signaling that buyers are ready to make offers on these new options," said Danielle Hale, Chief Economist of Realtor.com®. "While the drop in mortgage rates since last fall has helped boost buyer purchasing power, rates may not fall as quickly in the months ahead, and the anticipated improvement in affordability may be more uneven."
January 2024 Housing Metrics – National
Metric | Change over Jan 2023 | Change over Jan 2019 |
Median listing price | + | +41.5 % |
Active listings | +7.9 % | -40.1 % |
New listings | +2.8 % | -26.0 % |
Median days on market | -4 days (to 69 days) | -13 days |
Share of active listings with price reductions | -1.3 percentage points (to | -1.4 percentage points |
New Listings Increase
In January, more than half of the 50 metros included in the analysis saw new listings increase over the previous year, with some of the largest growth happening in
Grab 'em While They're Hot
Compared to January 2023, the typical home spent four less days on the market. In some spots, the time spent on the market decreased even more with
Listing Price Inches Higher
Buyers are looking at slight price increases and higher mortgage rates compared to last January. The cost of financing the typical home, assuming a
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® January Monthly Housing Report.
January 2024 Housing Overview by Top 50 Largest Metros
Metro Area | Median Listing | 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 |
2.5 % | 4.0 % | 1.8 % | 6.2 % | 56 | -10 | 15.9 % | -3.0 pp | ||
4.4 % | 3.0 % | 2.0 % | -11.5 % | 77 | -2 | 22.1 % | -9.3 pp | ||
2.3 % | 5.6 % | -4.6 % | -3.0 % | 53 | -4 | 12.3 % | -1.5 pp | ||
5.5 % | 5.8 % | 16.0 % | 2.7 % | 71 | 3 | 14.3 % | -1.6 pp | ||
6.6 % | 11.3 % | -8.9 % | -3.6 % | 53 | -8 | 8.9 % | -1.3 pp | ||
6.7 % | 8.5 % | -1.7 % | -12.6 % | 68 | -3 | 6.1 % | -1.5 pp | ||
1.3 % | 5.7 % | -5.9 % | 7.4 % | 59 | -8 | 17.0 % | -2.2 pp | ||
7.0 % | 6.3 % | -18.2 % | -16.4 % | 56 | -5 | 9.4 % | -2.1 pp | ||
0.7 % | 6.1 % | 19.5 % | 10.0 % | 54 | -1 | 13.7 % | 1.3 pp | ||
13.1 % | 9.2 % | -4.4 % | -4.9 % | 58 | -2 | 14.7 % | 1.0 pp | ||
6.3 % | 6.8 % | 12.3 % | 3.4 % | 55 | 0 | 17.5 % | -1.3 pp | ||
-0.7 % | 1.5 % | 7.6 % | 2.9 % | 63 | -2 | 19.3 % | -3.4 pp | ||
0.0 % | 6.4 % | 11.4 % | 21.3 % | 63 | -2 | 15.1 % | -1.9 pp | ||
1.0 % | 2.3 % | -13.5 % | -1.3 % | 50 | -12 | 10.8 % | -5.8 pp | ||
5.7 % | 6.8 % | -5.1 % | -8.1 % | 52 | -4 | 6.9 % | 0.7 pp | ||
1.1 % | 2.0 % | 9.7 % | 7.9 % | 59 | -5 | 15.5 % | -2.5 pp | ||
7.0 % | 6.8 % | 6.6 % | -3.9 % | 67 | 6 | 18.1 % | 0.5 pp | ||
5.2 % | 5.4 % | 8.5 % | 9.8 % | 66 | -7 | 20.9 % | -2.8 pp | ||
-3.4 % | -1.2 % | -1.5 % | -8.5 % | 76 | -6 | 10.9 % | -0.4 pp | ||
4.5 % | 5.2 % | -42.9 % | -7.0 % | 59 | -19 | 14.1 % | -11.6 pp | ||
17.2 % | 9.9 % | -13.3 % | 13.6 % | 57 | -11 | 8.2 % | -3.4 pp | ||
3.2 % | 5.1 % | 7.4 % | -10.4 % | 53 | -2 | 15.7 % | -1.7 pp | ||
-1.4 % | 3.5 % | 28.8 % | -4.8 % | 73 | 2 | 18.4 % | 0.6 pp | ||
-5.1 % | 1.1 % | 25.4 % | 20.2 % | 68 | -4 | 18.2 % | 2.6 pp | ||
-2.3 % | 1.0 % | 4.6 % | -9.1 % | 46 | -9 | 10.2 % | -4.1 pp | ||
1.4 % | 1.3 % | 6.6 % | 15.2 % | 57 | -3 | 9.1 % | -1.3 pp | ||
10.0 % | 6.3 % | -4.7 % | -7.9 % | 46 | -7 | 14.9 % | -4.9 pp | ||
0.0 % | 0.2 % | 28.5 % | -14.7 % | 84 | 4 | 17.5 % | -0.7 pp | ||
11.9 % | 17.3 % | -12.2 % | -4.3 % | 79 | -3 | 6.9 % | -1.6 pp | ||
-5.7 % | -0.5 % | 16.3 % | 1.6 % | 59 | -5 | 19.5 % | 3.4 pp | ||
1.3 % | 2.6 % | 27.3 % | 9.5 % | 66 | -6 | 20.3 % | -0.8 pp | ||
4.8 % | 6.1 % | -9.6 % | -12.9 % | 66 | -2 | 11.6 % | -2.0 pp | ||
11.6 % | 4.1 % | -15.3 % | -3.4 % | 60 | -14 | 23.1 % | -8.0 pp | ||
17.5 % | 13.5 % | 3.5 % | 6.9 % | 79 | -7 | 15.0 % | -0.9 pp | ||
1.1 % | 3.3 % | 11.8 % | 5.0 % | 71 | -1 | 11.6 % | -5.1 pp | ||
6.3 % | 1.0 % | -9.5 % | 2.8 % | 54 | 1 | 8.0 % | -2.1 pp | ||
-1.3 % | 5.1 % | -17.1 % | 2.3 % | 63 | -11 | 11.6 % | -6.5 pp | ||
16.2 % | 8.1 % | 4.6 % | 1.5 % | 61 | 2 | 8.3 % | -1.8 pp | ||
4.5 % | 7.5 % | -11.8 % | 16.1 % | 64 | -10 | 12.4 % | -4.1 pp | ||
6.0 % | 7.5 % | -8.2 % | -0.4 % | 33 | -10 | 6.7 % | -1.1 pp | ||
5.9 % | 4.9 % | -19.5 % | 14.3 % | 55 | -12 | 11.4 % | -5.0 pp | ||
-3.3 % | -0.5 % | 24.4 % | 15.7 % | 76 | -3 | 21.5 % | -1.5 pp | ||
8.0 % | 14.2 % | -5.7 % | 18.8 % | 43 | -11 | 10.0 % | -2.1 pp | ||
-3.5 % | -1.0 % | -9.6 % | 18.2 % | 49 | -13 | 7.0 % | -3.7 pp | ||
-4.5 % | -4.4 % | -19.1 % | 9.0 % | 42 | -12 | 5.1 % | -4.0 pp | ||
3.1 % | 6.5 % | -9.7 % | 20.6 % | 59 | -6 | 7.9 % | -7.5 pp | ||
2.8 % | 3.4 % | 9.4 % | -3.4 % | 59 | -5 | 13.4 % | -0.7 pp | ||
4.9 % | 6.3 % | 20.1 % | 12.0 % | 64 | -1 | 25.0 % | -1.1 pp | ||
2.2 % | 6.6 % | 4.3 % | -1.9 % | 50 | -3 | 14.8 % | 1.5 pp | ||
3.8 % | 6.4 % | -13.3 % | -5.0 % | 53 | -6 | 9.1 % | -3.1 pp | ||
Methodology
Realtor.com® housing data as of January 2024. 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
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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SOURCE Realtor.com
FAQ
What was the percentage increase in active listings compared to last year?
How much did the median listing prices grow by?
Which metros saw significant growth in new listings?
Which metros experienced declines in new listings?
What was the change in time spent on the market compared to pre-pandemic levels?
What was the increase in the monthly cost to purchase a home compared to a year ago?
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