January 2024 Market Updates

Monthly Indicators

U.S. existing-home sales slipped 1.0% month-over-month and were down 6.2% year-over-year as of last measure, while pending sales jumped 8.3% from the previous month, marking the largest gain since June 2020, according to the National Association of REALTORS® (NAR). Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with NAR forecasting a 13% increase in existing-home sales this year compared to 2023.

New Listings were up 33.2 percent to 734. Pending Sales decreased 2.4 percent to 402. Inventory grew 27.0 percent to 1,745 units.

Prices moved higher as Median Sales Price was up 19.5 percent to $291,950. Days on Market increased 3.0 percent to 68 days. Months Supply of Inventory was up 25.0 percent to 3.5 months, indicating that supply increased relative to demand.

Despite tepid sales activity, the persistent shortage of housing supply has helped prop up home values nationwide, with the median existing-home price rising 4.4% year-over-year to $382,600, according to NAR. Total unsold inventory was at 1 million units heading into January, an 11.5% decline from the previous month, for a 3.2 months’ supply at the current sales pace. Nationally, listing activity has started to pick up, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.

Housing Supply Overview

After a brief decline, national sales of new residential homes are on the rise again, increasing 8% month-over-month and 4.4% year-over-year to a seasonally adjusted rate of 664,000 units, according to the U.S. Census Bureau. Lower interest rates and a shortage of existing-home inventory continue to be a boon for the new-home market, with sales of new residential homes up 4.2% from 2022 to an estimated 668,000 units in 2023. For the 12-month period spanning February 2023 through January 2024, Pending Sales in the Western Upstate Association of REALTORS® region went up 1.9 percent overall. The price range with the largest pending sales gain was the $250,001 to $350,000 range, where sales improved 20.4 percent.

The overall Median Sales Price rose 7.0 percent to $290,000. The property type with the largest gain was the Single-Family Homes segment, where prices improved 6.8 percent to $299,000. The price range that tended to sell the quickest was the $150,000 and Below range at 52 days. The price range that tended to sell the slowest was the $1,000,001 and Above range at 78 days.

Market-wide, inventory levels improved 27.0 percent. The property type with the largest gain was the Single-Family Homes segment, where the number of properties for sale went up 28.7 percent. That amounts to 3.5 months of inventory for Single-Family Homes and 2.7 months of inventory for Condos.

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