Home stretch of 2023 features familiar
end-of-year dynamics
DENVER, Jan. 17,
2024 /PRNewswire/ -- December
2023 exhibited a traditional end-of-year slowing in housing
market activity, punctuated by many similarities to December 2022.
Three metrics showed no change year over year:
- Homes sold were on the market an average of 47 days in both
Decembers – seven days longer than in November 2023
- December 2023 sales averaged 98%
of the listing price, the same as the prior year and slightly down
from 99% in November 2023
- Months' supply of inventory in both Decembers was 2.5, slightly
down from 2.6 in November 2023
Other results included:
- December home sales dropped 7.3% year over year – and 2.3% from
November. As in 2022, the number of home sales declined year over
year in every month of 2023.
- Inventory slipped just 0.7% from December 2022 while dropping 10.4% from November.
Inventory declined year over year each of the last seven months of
2023.
Two metrics made year-over-year gains in December across the 52
metro areas surveyed:
- December's new listings were up 2.7% year over year while down
24.3% from November.
- The median sold price of $400,000
was 3.9% (or $15,000) higher than
December 2022 and 1.2% lower than
November.
"There are many reasons to be encouraged about housing in 2024.
The high mortgage rates and inventory lows of 2023 definitely made
for a challenging market, but December data shows some positive
signs for the new year," said RE/MAX, LLC President and CEO
Nick Bailey. "If new construction
starts increase along with mortgage rates dropping, move-up buyers
may start to explore their options, making room for new buyers. We
believe there is a lot of pent-up demand, especially among younger
people."
Christopher Arienti, Broker/Owner
of RE/MAX Executive Realty outside of Boston, MA agrees that it feels like there's a
new momentum to the market. "The Boston Metro market definitely saw its
share of difficulty in 2023. Transactions were down almost 20%
in most areas as folks reacted to the higher interest rates. The
good news: As the mortgage rates came down at the end of 2023,
agents and homebuyers entered our 2024 market with more optimism.
If the buyers pool remains strong, our spring market could be
exciting – and you can feel the excitement among our agents."
Highlights and local market results for December include:
New Listings
Of the 52 metro areas surveyed in
December 2023, the number of newly
listed homes was down 24.3% compared to November 2023 and up 2.7% compared to
December 2022. The markets with the
biggest decrease in year-over-year new listings percentage were
Manchester, NH at -31.3%,
Anchorage, AK at -18.1%, and
Indianapolis, IN at
-13.7%. The markets with the biggest year-over-year increase
in new listings percentage were Bozeman,
MT at +75.6%, Houston, TX
at +22.0%, and Phoenix, AZ at
+19.6%.
New Listings:
5 Markets with the Biggest YoY Increase
|
Market
|
Dec 2023
New Listings
|
Dec 2022
New Listings
|
Year-over-Year
% Change
|
Bozeman, MT
|
151
|
86
|
+75.6 %
|
Houston, TX
|
8,822
|
7,229
|
+22.0 %
|
Phoenix, AZ
|
5,299
|
4,431
|
+19.6 %
|
Des Moines,
IA
|
588
|
494
|
+19.0 %
|
Omaha, NE
|
807
|
697
|
+15.8 %
|
Closed Transactions
Of the 52 metro areas
surveyed in December 2023, the
overall number of home sales was down 2.3% compared to November 2023 and down 7.3% compared to
December 2022. The markets with the
biggest decrease in year-over-year sales percentage were
Providence, RI at -18.4%,
Boston, MA at -17.9%, and
Cleveland, OH at -17.2%. The
markets with the biggest increase in year-over-year sales
percentage were Coeur d'Alene, ID at +20.7%, Burlington, VT at +9.5%, and Richmond, VA at +6.8%.
Closed
Transactions:
5 Markets with the Biggest YoY Decrease
|
Market
|
Dec 2023
Transactions
|
Dec 2022
Transactions
|
Year-over-Year
% Change
|
Providence,
RI
|
949
|
1,163
|
-18.4 %
|
Boston, MA
|
2,874
|
3,499
|
-17.9 %
|
Cleveland,
OH
|
1,674
|
2,021
|
-17.2 %
|
Honolulu, HI
|
483
|
579
|
-16.6 %
|
New Orleans,
LA
|
745
|
879
|
-15.2 %
|
Median Sales Price – Median of 52 metro area prices
In
December 2023, the median of all 52
metro area sales prices was $400,000,
down 1.2% compared to November 2023
and up 3.9% from December 2022. The markets with the largest
year-over-year decrease in median sales price were New Orleans, LA at -6.3%, Coeur d'Alene, ID at
-3.7%, and Charlotte, NC at -2.3%.
The markets with the largest year-over-year increase in median
sales price were Trenton, NJ at
+19.6%, Hartford, CT at +15.8%,
and Baltimore, MD at +12.6%.
Median Sales
Price:
5 Markets with the Biggest YoY Increase
|
Market
|
Dec 2023
Median Sales Price
|
Dec 2022
Median Sales Price
|
Year-over-Year
% Change
|
Trenton, NJ
|
$405,000
|
$338,500
|
+19.6 %
|
Hartford, CT
|
$330,000
|
$285,000
|
+15.8 %
|
Baltimore,
MD
|
$379,548
|
$337,000
|
+12.6 %
|
New York, NY
|
$561,000
|
$500,000
|
+12.2 %
|
Bozeman, MT
|
$700,000
|
$630,000
|
+11.1 %
|
Close-to-List Price Ratio – Average of 52 metro area
prices
In December 2023, the
average close-to-list price ratio of all 52 metro areas in the
report was 98%, down from 99% in November
2023 and flat compared to December
2022. The close-to-list price ratio is calculated by the
average value of the sales price divided by the list price for each
transaction. When the number is above 100%, the home closed for
more than the list price. If it's less than 100%, the home sold for
less than the list price. The metro areas with the lowest
close-to-list price ratio were Miami,
FL at 95%, followed by a three-way tie between Bozeman, MT, Coeur d'Alene, ID, and
New Orleans, LA at 96%. The metro
areas with the highest close-to-list price ratios were Hartford, CT at 102%, followed by a four-way
tie between Burlington, VT,
Manchester, NH, San Francisco, CA, and Trenton, NJ at 101%.
Close-to-List Price
Ratio:
5 Markets with the Biggest YoY Decrease
|
Market
|
Dec 2023
Close-to-List Price
Ratio
|
Dec 2022
Close-to-List Price
Ratio
|
Year-over-Year
Difference*
|
Burlington,
VT
|
100.6 %
|
103.3 %
|
-2.7 pp
|
Bozeman, MT
|
96.4 %
|
97.6 %
|
-1.2 pp
|
Omaha, NE
|
98.6 %
|
99.6 %
|
-1.1 pp
|
Des Moines,
IA
|
98.6 %
|
99.1 %
|
-0.5 pp
|
Wichita, KS
|
99.2 %
|
99.6 %
|
-0.4 pp
|
*Difference
displayed as change in percentage points
|
Days on Market – Average of 52 metro areas
The average
days on market for homes sold in December
2023 was 47, up seven days compared to the average in
November 2023 and flat compared to
December 2022. The metro areas with
the lowest days on market were Baltimore,
MD at 17, Washington, DC at
19, and Philadelphia, PA at
21. The highest days on market averages were in Coeur d'Alene,
ID at 94, Fayetteville, AR at 81,
and Des Moines, IA at 77. Days on
market is the number of days between when a home is first listed in
an MLS and a sales contract is signed.
Days on Market:
5 Markets with the Biggest YoY Increase
|
Market
|
Dec 2023
Days on Market
|
Dec 2022
Days on Market
|
Year-over-Year
% Change
|
Coeur d'Alene,
ID
|
94
|
64
|
+46.9 %
|
Birmingham,
AL
|
56
|
39
|
+44.1 %
|
Honolulu, HI
|
56
|
41
|
+35.7 %
|
New Orleans,
LA
|
65
|
50
|
+30.5 %
|
Cincinnati,
OH
|
37
|
29
|
+28.7 %
|
Months' Supply of Inventory – Average of 52 metro
areas
The number of homes for sale in December 2023 was down 10.4% from November 2023 and down 0.7% from December 2022. Based on the rate of home sales in
December 2023, the months' supply of
inventory was 2.5, down from 2.6 in November
2023 and flat compared to December
2022. In December 2023, the
markets with the lowest months' supply of inventory were
Trenton, NJ at 0.7, Seattle, WA at 0.9, followed by a tie between
Manchester, NH and Washington, DC at 1.1. The markets with the
highest months' supply of inventory were Bozeman, MT at 5.4, San Antonio, TX at 5.3, and Miami, FL at 5.2.
Months' Supply of
Inventory:
5 Markets with the Biggest YoY Decrease
|
Market
|
Dec 2023
Months' Supply
of Inventory
|
Dec 2022
Months' Supply
of Inventory
|
Year-over-Year
% Change
|
Coeur d'Alene,
ID
|
2.2
|
4.0
|
-45.3 %
|
Las Vegas,
NV
|
2.7
|
4.4
|
-39.0 %
|
Seattle, WA
|
0.9
|
1.2
|
-27.0 %
|
Trenton, NJ
|
0.7
|
1.0
|
-26.8 %
|
Chicago, IL
|
2.2
|
2.9
|
-21.4 %
|
About the RE/MAX Network
As one of the leading global
real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX
Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000
offices and a presence in more than 110 countries and territories.
Nobody in the world sells more real estate than RE/MAX, as measured
by residential transaction sides. RE/MAX was founded in 1973 by
Dave and Gail Liniger, with an
innovative, entrepreneurial culture affording its agents and
franchisees the flexibility to operate their businesses with great
independence. RE/MAX agents have lived, worked and served in their
local communities for decades, raising millions of dollars every
year for Children's Miracle Network Hospitals® and other
charities. To learn more about RE/MAX, to search home listings or
find an agent in your community, please visit www.remax.com. For
the latest news about RE/MAX, please visit news.remax.com.
Report Details
The RE/MAX National Housing Report is
distributed monthly on or about the 15th. The Report is based on
MLS data for the stated month in 52 metropolitan areas, includes
single-family residential property types, and is not annualized.
For maximum representation, most of the largest metro areas in the
country are represented, and an attempt is made to include at least
one metro area in almost every state. Metro areas are defined by
the Core Based Statistical Areas (CBSAs) established by the U.S.
Office of Management and Budget.
Definitions
Closed Transactions are the total number
of closed residential transactions during the given month. Months
Supply of Inventory is the total number of residential properties
listed for sale at the end of the month (current inventory) divided
by the number of sales contracts signed (pending listings) during
the month. Where "pending" data is unavailable, an inferred pending
status is calculated using closed transactions. Days on Market is
the average number of days that pass from the time a property is
listed until the property goes under contract. Median Sales Price
for a metro area is the median sales price for closed transactions
in that metro area. The nationwide Median Sales Price is
calculated at the nationwide aggregate level using all sale prices
from the included metro areas. The Close-to-List Price Ratio
is the average value of the sales price divided by the list price
for each closed transaction.
MLS data is provided by Seventy3, LLC, a RE/MAX Holdings
company. While MLS data is believed to be reliable, it cannot be
guaranteed. MLS data is constantly being updated, making any
analysis a snapshot at a particular time. Every month, the previous
period's data is updated to ensure accuracy over time. Raw data
remains the intellectual property of each local MLS
organization.
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SOURCE RE/MAX, LLC