Latest market pulse report reveals state of the market
The real estate market may be approaching the spring buying season with cautious optimism, but the latest report from HouseCanary, Inc. has highlighted a notable downturn in market activity year on year.
HouseCanary, a brokerage known for real estate valuations, has unveiled its February Market Pulse Report, indicating a significant 15.3% decrease in net new listings and an 11.7% drop in contract volume compared to the same period last year.
According to the report, the market reflects sluggish trends observed in the year to date. While there’s an 11.7% increase in inventory from last year, overall levels remain relatively low, intensifying market pressures. In February 2024, both net new listings and contract volumes experienced a sharp decline compared to the previous year.
Jeremy Sicklick, co-founder and CEO of HouseCanary, shed light on the challenges.
“In January, we saw net new listings and contract volumes trend at multi-year seasonal lows. Although those metrics are slightly up versus last month, the housing market is still facing significant pressures,” he said.
Sicklick pointed to the Federal Reserve’s aim of maintaining interest rates around 7%, which has kept many potential buyers hesitant and sellers reluctant to list their properties.
The report indicates a persistent trend of low inventory levels, albeit higher than the preceding two years. Both listed and closed prices have seen positive growth compared to February 2023, with overall home prices on an upward trajectory. However, Sicklick anticipates a subdued spring buying season, with the continuation of current trends until rates or home prices stabilize.
Notable findings
Over the past 52 weeks, 2,502,785 net new listings were introduced, with 2,570,447 properties going under contract, marking a 15.3% and 11.7% decrease, respectively, compared to the previous year.
In February 2024, 189,394 net new listings were placed on the market, and 243,305 properties went under contract, reflecting a 10.6% and 2.2% decrease, respectively, from February 2023.
The decline in net new listings was propelled by a 7.6% decrease in new listing volume and a 4.4% increase in removals compared to February 2023.
The median days on the market stands at 45, indicating a 2.3% increase from the previous year.
The median price of all single-family listings in the US reached $430,557, with a median closed price of $405,992. On a year-over-year basis, the median price of all single-family listings and closed listings witnessed increases of 3.3% and 8.3%, respectively. Month-over-month, both figures experienced a rise of 0.2% and 3.7%, respectively.
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