Buyer Demand:
Last week, there were 127 homes that went pending for sale, reflecting a level of activity closely mirroring the patterns of the previous six weeks. Historically, November typically sees a decline in pending sales (with 2021 being a rare exception), with the period between holidays being the least active. Of the 127 pending sales, 39 were new construction (a decrease from the previous 44), and 88 were resales (an increase from the prior week’s 80).
Supply:
There were 1324 homes available for sale, showing a slight decrease from the previous 1348. Out of this inventory, 324 were completed new-construction homes (down from 330), 230 were under construction (an increase from 215), and 770 were resale homes (down from 803).
Inventory Rate:
The inventory rate continues to hover in the mid-2 month range, reflecting relatively stable home prices on the average. New construction is trending a bit higher at 3.3 months (up from 2.9) and resale a bit lower at 2.0 (down from 2.3 months).
Interest Rates:
With the decline in Treasury yields, the 30-year fixed-rate mortgage saw a notable drop of 0.25%, marking its most significant weekly decrease since November of the previous year.
Historical Context: Inventory Rate
Historically, an inventory rate in the mid-2 month range would traditionally indicate a seller’s market, consistent with conditions observed from roughly 2015 to 2020. This stands in stark contrast to the buyer’s market of 2008-2009 when inventory rates surged to as high as 16 months.
For a historical perspective on buyer demand, available homes, inventory rates, and median home prices, please click here.
*Although the author attempts to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Go to Disclaimers and Methodology.
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