Inventory declined for the fourth straight month from a peak in August of 1.3 million to 1.14 million in November. This was a 6.6% decrease from the previous report. This is due to the seasonal build that happens every year. This will continue to limit the downslide in home prices and will set up for a reacceleration in appreciation once hibernating buyers come back next year when rates hopefully fall further.
First-time homebuyers accounted for 28% of sales. This was unchanged from the previous report and amazingly 2% higher than this time last year! Considering the rise in mortgage rates from last year and fewer lower-priced homes available, this shows first-time homebuyer appetite is still strong.
The average time homes were on the market was 24 days. This is up from 21 days in the previous report, but they’re still moving fast. 61% of homes were on the market for less than 30 days!
With all this data in mind, we can see that it is still a strong housing market that has a lot of opportunities. Existing Home Sales did come in a little softer, but not in every area of the report. There is still strength in home pricing and a huge demand for homes. Once again, it’s simple economics 101 supply and demand. With inventory being so tight and the demand for homes so high, this is why home prices keep holding strong.