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Local Housing Market: Supply Dips, Prices Hold Steady as Winter Sets In
Local homebuyers continue to face a challenging market as November saw a decrease in available homes, coupled with persistent high prices and mortgage rates. While sales of previously owned homes saw a slight uptick from October, they remained lower than the previous year.
According to the National Association of Realtors, sales of existing homes rose by a modest 0.5% in November compared to October, reaching an annualized rate of 4.13 million units. However, this figure represents a 1% decrease from November 2024. These sales typically reflect contracts signed in September and October, a period when mortgage rates experienced a brief dip before stabilizing.
The supply of homes, which had been gradually increasing throughout much of the year, took a dip in November. There were 1.43 million homes listed for sale at the end of the month, a 5.9% decrease from October, but still up 7.5% year-over-year. This current inventory represents a 4.2-month supply, short of the six-month supply generally considered a balanced market for both buyers and sellers.
Lawrence Yun, chief economist for the Realtors, noted, “Inventory growth is beginning to stall. With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months.”
Adding to the tightened supply, more sellers than usual opted to delist their properties as winter approached. This common seasonal trend was particularly pronounced this year, contributing to the ongoing pressure on home prices.
The median price of a home sold in November reached $409,200, marking a 1.2% increase from November 2024 and setting a new record for November. This median measurement can be influenced by which segment of the market is most active, and currently, the higher end of the market is seeing more sales. Sales of homes priced between $100,000 and $250,000 were down nearly 8% from a year ago, while homes priced over $1 million saw a 1.4% increase.
Yun emphasized, “Wage growth is outpacing home price gains, which improves housing affordability. Still, future affordability could be hampered if housing supply fails to keep pace with demand.”
Homes are also spending more time on the market, averaging 36 days in November compared to 32 days last November. First-time homebuyers accounted for 30% of sales, a figure unchanged from a year ago but historically closer to 40%. Meanwhile, investors re-entered the market, making up 18% of transactions, an increase from 13% in November 2024.