January 2024 Housing Market Update
This is the first market update that will make sense in quite a while. No surprise here, December was a slow month in the real estate market. All numbers pointed in the direction you'd expect for this time of year.
In this market update, I will talk a lot about what you can't see in the numbers... But first, I'll share the cliff notes with you.
New Listings = 762 new listings hit in December, a 43% drop from November. This is 300 less new listings than we saw the same month last year.
Available Listings = 28% drop from November to December. This is expected, but it is a massive 64% lower than the same month last year.
Pending Sales (Buyer Demand) = Lower again. Slightly less buyer demand than we saw last month.
Days on Market = Back up a bit higher. 29 was the days on market for December. Still really fast for a winter market with such low buyer demand.
Price = Dipped from last month's massive peak. Median sale price was $1,070,000.
As I mentioned, December was a slow month. I'm going to add something to our summary, you tell me if this will be helpful or not...
Interest Rate = 6.72% is the rate (as of today, this moves constantly) for a 30 year fixed. I will always be pulling this from MortgageNewsDaily.com.
You're reading this early in 2024; remember that these are December numbers. We put out our market updates the first week of every month to make sure they're as up-to-date as possible. We do this so you can have the most accurate information possible. We also share local (Orange County) numbers, not national numbers.
The biggest difference we can provide is that we are in the field talking to a ton of people in the marketplace. For reference, our team talked to 835 people and went on 522 appointments with people just like you. We know exactly what is going on in the market as it happens. We don't have to wait until the end of the month for new numbers.
I'm going to make a comparison of the summary you read above and what is happening as of January 1.
December’s numbers while not surprising, are VERY low. Demand is lower than it's ever been and active inventory isn't far off. Prices came back down a bit but are still at an all-time high.
Here is what isn't in the numbers...
There are a TON of people who were waiting for the beginning of the year to restart their shopping. Yes, this happens every year, yet this year is different. We're going to see a lot of inventory come to the market (finally). Everyone is expecting interest rates to come down. Which is the first time buyers and sellers have agreed on anything in a long time.
In a blog that we sent out a few weeks ago, we saw that buyers are willing to push prices significantly higher.
The real question is, how much inventory comes to the market. Is it enough to keep up with the massive pent-up buyer demand that has been waiting on the sidelines? Most experts don't think so.
In the conversations we're having with most people looking to make a move, they're expecting 2024 to be a competitive year. Not like 2020, but not too far off.
If you're even considering a move this year, you should book a strategy session and get ahead of the game.
Hope you found this helpful!