As the housing market navigates through late 2023, homebuyers encounter a mix of encouraging and challenging developments. Notably, there’s been a 7.5% increase in new home listings this November compared to last year, marking the first annual growth in newly listed homes in 17 months. This surge is significant, ending a four-month streak of inventory declines and marking the first November increase in seasonal housing stock since 2016.
However, alongside these positive changes, home affordability has reached new heights. The median home price in November stood at $420,000, slightly down from October, but the impact of higher mortgage rates has pushed the monthly financing cost up by 7.9% compared to last year. This rise in rates means the typical homebuyer now needs an annual income of around $118,000 to afford these payments – a notable increase from the previous year.
The reasons behind this market shift are multifaceted. Many sellers, anticipating further rate increases, are entering the market now rather than waiting for a potential drop. This sentiment aligns with current consumer expectations and market analyses.
Despite the overall decrease in homes for sale compared to pre-pandemic levels, certain areas like Memphis, TN, and New Orleans are witnessing significant inventory growth.
For those navigating this complex market, understanding these dynamics is crucial. With homes spending fewer days on the market than last year, timing and knowledge are key for prospective buyers.
