Weekly Housing Market Update, 11.11.24

joneill

by Justin O’Neill, Flyhomes

We’re back to our regular Market Update routine after last week’s special edition covering the Election and the Fed’s interest rate cut. 

This Week’s Theme: Housing is having an Election hangover

Market activity took a brief pause due to the Election, which has impacted this week’s numbers. Expect to see some declines now and a rebound next week.

Before we get started, a heartfelt Happy Veterans Day to all who served.

Now, let’s dive into the current state of 1. MORTGAGE RATES, 2. INVENTORY, 3. DEMAND, and 4. PRICING.

1. MORTGAGE RATES

  • Current Rate: 6.97% (down slightly for the week)
  • Trend: Mortgage rates are gradually edging lower, a welcome relief as we flirt with the 7% mark.
  • Key Data:
    • Recent jobless claims were steady.
    • CPI (Consumer Price Index) met expectations at 2.6%.
  • Insight: Watch jobless claims. If they go up, rates could drop; if they go down, expect rates to climb. It’s not always straightforward, but that’s the general trend.

2. INVENTORY

  • Current Level: 722,000 homes (down 2%)
  • Trend: We’re in the seasonal decline, with only a couple of weeks left for inventory to build.
  • Impact of the Election: New listings were delayed, and many listings were withdrawn, affecting the numbers.
  • Looking Ahead: Analysts are optimistic that 2025 might bring inventory levels back to 2019 pre-pandemic numbers.

3. DEMAND

  • Positive Sign: Mortgage applications for home purchases rose by 1%—the first increase in seven weeks.
  • Sales Pace: Down by about 2%, but still better than the same period in previous years.
  • Takeaway: Despite last week’s Election stall, demand remains stronger than expected, showing that buyers are staying active.

4. PRICING

  • Current Trend: Median contract prices dropped by 2% this week.
  • Comparison: Despite the dip, home prices are still up 4% compared to last year.
  • Future Outlook: Price cuts have decreased rather than increased, signaling that prices will quickly rebound from the Election induced dip.

WRAP-UP

That’s it for this week’s update! If you have any questions or want more details, feel free to reach out:

Contact Me: joneill@flyhomes.com
Learn More About Flyhomes: hello@flyhomes.com

Take care, and see you next week!

Sources:

  • Altos Research
  • HousingWire
  • St. Louis Federal Reserve