Across the NorthstarMLS coverage area, showing activity was up 5.3% compared to the same week last year. Most price points saw gains. Six out of nine price ranges had more showings this period than last. Partly due to lack of inventory and other factors, showings were down in all ranges under $300K. Showings in the $300-400K price range, which includes the statewide median home price, rose 20.0% and accounted for the largest share of showings at 28.9%.
Sellers have been more active than buyers this year, particularly move-up sellers with equity from their current home. That allowed for some inventory growth last year but that trend may not continue. At 45 days on market, homes took longer to sell as market times rose. Those homes sold for higher prices as the median home price rose 4.4% to $340,000. Sellers accepted offers within nearly 97.0% of their list price, which is higher than in 2017, 2018 and 2019. The market still favors sellers, but at 2.6 months of supply, buyers have more options than in the past as they navigate a less frantic marketplace.
30-year fixed mortgage rates are still hovering on either side of 7.0%, according to Mortgage News Daily. The Federal Reserve’s quarter-point December rate cut was mostly expected and priced in, but Chair Powell’s commentary afterwards rattled stocks. We can expect fewer rate cuts in 2025 while monetary policymakers monitor the economy and inflation. That means rates are likely to settle down more slowly than initially expected. But with two consecutive months of year-over-year gains in pending sales after five months of declines, buyers are finally showing some signs of acceptance when it comes to today’s rate environment.