November’s Housing Market: A Slow Crawl, But a New Opportunity Awaits

The housing market in November 2024 slowed to a pace not seen in half a decade, with high mortgage rates largely to blame. According to Realtor.com® senior economist Ralph McLaughlin,

“High rates in November had led to the slowest market since January of this year and the slowest November in five years.”

While the market typically cools this time of year, November saw homes staying on the market for an average of 62 days, 11 days longer than in 2023.

Rising Mortgage Rates Dampen Buyer Power

With the 30-year fixed mortgage rate edging toward 7%, many budget-conscious buyers opted to sit out this fall. Realtor.com’s 2025 housing forecast suggests mortgage rates will average 6.3% next year, slightly below 2024’s 6.7% but still far above historical averages of 4% recorded between 2013 and 2019.

As McLaughlin explains,

“Higher mortgage rates continue to erode buyer purchasing power, making it harder for many would-be homeowners to afford the homes they want.”

This affordability challenge, combined with cautious sellers, has created a standstill market.

Home Prices Dip Amid Growing Housing Stock

While mortgage rates climbed, home prices fell slightly—by 0.7% year over year, with the median price at $416,880. However, the dip in prices isn’t uniform; affordable homes are increasing their market share, balancing out higher-priced properties.

McLaughlin further elaborates:

“The median price per square foot grew by 1.6%, indicating that the inventory of smaller and more affordable homes continues to grow in share.”

 For buyers, this means a greater chance to secure a budget-friendly property.

Inventory Reaches Pre-Pandemic Highs

Active housing listings jumped 26.2% year over year, marking the highest November inventory levels since 2019. Despite this, new listings increased only slightly at 2% year over year, signaling that potential sellers are holding back due to uncertainty over future mortgage rates.

Regional Housing Trends to Watch

Buyers in the South had the most options, with listings up 34.8% year over year. The West saw a notable increase of 29.2%, while the Midwest and Northeast experienced more moderate growth of 18.9% and 9.7%, respectively.

San Diego, Miami, and Denver led the pack with housing stock surges over 50%, while Birmingham and Las Vegas stood out for their spike in new listings. For buyers looking to make a move, these metros could offer abundant opportunities.

A Buyer’s Market Advantage

With homes staying on the market longer than in recent years, buyers can take their time to weigh options. Danielle Hale, Realtor.com’s Chief Economist, notes,

“Buyers who want to take their time mulling a major decision are seeing the market support that.”

However, sellers must prepare for extended waiting periods before closing deals.

Bottomline

November 2024 highlighted a housing market stuck in a slow crawl, yet full of opportunities for patient buyers. Cooling prices and rising inventory offer hope for balance after years of turbulence. For sellers, it’s essential to adjust expectations to reflect today’s cautious market.

If you’re planning a move and want to explore your options, let’s connect today!

Reference: Heidenry, Margaret. “November’s Housing Market Crawled to Its Slowest Pace in 5 Years—Even as Prices Fell and Housing Stock Jumped.” Realtor.com, December 5, 2024.