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MNR Market Monday Update—January 13, 2025

By MNR News posted 01-13-2025 04:16 PM

  

Across the NorthstarMLS coverage area, showing activity was as flat as it gets without being zero, down just 0.1% compared to the same week in 2024. That said, a full six out of nine price ranges had more showings compared to last year. Every segment under $300K—where inventory is thin and options are limited—saw less showing activity.  The $300-400K price range, which includes the statewide median home price, accounted for the largest share of showings at 27.9%. Homes over a million account for 2.8% of showings; homes between $200-250K made up 9.4% of showings. 

We’re starting to see some preliminary 2024 annual numbers. Those figures show a roughly 6.5% increase in new listings and a 1.0% increase in closed sales. With more supply relative to demand, homes took longer to sell. The preliminary median home price rose about 4.0% to around $345,000. So far, we’re actually seeing a very slight decrease in inventory levels, which may be surprising given the fact that inventory levels increased every month in 2024. But inventory is calculated as a snapshot at month-end, not an average over the month or months. So technically at the end of December, there were fewer homes for sale than in 2023. 

Mortgage rates unfortunately haven’t been moving in the right direction. A month ago, they stood around 6.9% but now the 30-year fixed mortgage rate is more like 7.25%, according to Mortgage News Daily. That’s partly due to a stronger-than-expected jobs report. The Federal Reserve’s December rate cut was priced in, but markets did not appreciate Chair Powell’s commentary afterwards. Powell hinted at fewer and possibly smaller rate cuts in 2025. Most expect rates to continue to ease, but at a slower pace than originally anticipated. And, as we’re seeing, with some bumps. 

To view the latest Weekly Showings Report, click here.

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