Number of Homes for Sale and New Listings Improve in January 2024 [VIDEO]

Summary

Realtor. com^®‘s January housing data shows the number of homes for sale and new listing activity continues to improve compared to January 2023. Listing prices continue to rise slowly, with few existing homes for sale. Meanwhile, time on the market is below that of recent years.

Report

January housing data from realtor.com suggests positive trends in the real estate market, with improvements in the number of homes for sale and new listings compared to January 2023. The report indicates a complex situation where the market fluctuates between improvement and a status quo, influenced by economic data, pricing dynamics, and uncertainties about Federal Reserve decisions and mortgage rates.

The number of homes actively for sale showed a notable increase of 7.9% in January compared to January 2023, marking the third consecutive month of annual inventory growth. Despite the improvement, the current home inventory remains 39.7% below typical levels seen in 2017 to 2019. Total unsold homes, including those under contract, grew by 6.5% year-over-year, breaking a 7-month streak of annual total listing declines.

Pending listings, an early indicator of sales direction, increased by 2.66%, showing positive signs for future sales. Sellers were more active in January with a 2.8% increase in newly listed homes compared to January 2023, marking the third consecutive month of increased listing activity.

The national median list price declined slightly in January from December 2023, the median list price remained relatively stable compared to January 2023, growing by 1.4%. Homes spent an average of 69 days on the market, 4 days shorter than in January 2023 and more than 2 weeks shorter than the pre-COVID-19 pandemic.

The Fannie Mae Home Purchase Sentiment Index suggests uncertainty in selling sentiment over the coming months due to potential Federal Reserve decisions and inflation concerns. The cost to purchase a home continued to rise in January but at a slower pace. The national median list price showed a slight seasonal decline; however, the growth rate in the cost to purchase a home has slowed from December 2023.

Despite challenges and uncertainties, the housing market is showing resilience with positive indicators in inventory growth, increased listing activity, and a slowdown in the rate of cost escalation. Together, these dynamics suggest an evolving real estate landscape in the months ahead.