Welcome back what a wild housing market We have right now so for example the Number of new listings just increased by The biggest year Vier gain in about Three years also hous inventory is also Rising but meanwhile asking prices of Newly listed houses is relatively Stagnant at 0% gain over the past 12 Months so a lot of interesting Trends Happening right now in our US housing Market and today's video is based my own Analysis of realtor.com latest data just Announced uh today at the time of Filming this video which is on Friday March 22nd um let's go ahead and Dive Right In I have a lot to share uh this is uh the Article posted by um realtor.com Actually posted yesterday on Thursday Anyways just like my previous videos I Did not even read it instead go to Realtor.com Researchdata click on this link right There and it takes you to this Information so let's get nerdy here Let's talk about asking prices asking Prices were flat compared to 12 months Ago this is when you list your home for Sale you're listing listing price or Your asking price it is flat on a year- Ofe basis much different compared to uh When was this the decreases we saw in June of 2023 and also the double digit Gains we saw in
2022 very big changes also as a note Right there in the previous week asking Prices were down by 6% that was the First time prices were negative on a Year- ofe basis since July 2023 um asking price growth has been Relatively stagnant for quite some time Now and this is due to Rising inventory More price reductions by home Sellers And obviously 7% mortgage rates as well In addition perhaps there's more buyers That are on the sidelines waiting for Prices and or uh rates to decrease Before they um enter into the market as Well which may be one of the Contributing factors why asking prices Have been relatively um flat uh from one Year ago now speaking of um inventory Levels um a very big change here because Last week inventory levels Rose by 23.8% from the same week of 2023 that was the biggest year- of Increase since May of 2023 there's actually been more houses Ver sale this year compared to last year For 19 consecutive weeks in other words This means there's more options for home Buyers out there overall Nationwide Looking at averages of course real Estate is local but overall this is a Positive sign if you're looking to buy a House because there's more houses for Sale which of course makes it there's More options
And therefore that limits price growth And of course limits competition as well In my personal opinion uh inventory has Been on the rise as of late due to two Main reasons a huge increase or I should Say a significant rise in the number of Newly listed houses for sale and on top Of that decreasing demand so when Looking at a data from Red for example They posted um yesterday that pending Home sales were down on the basis yet New listings were up by double digits so Supply outpacing Demand right now this Is all contributing to the rise of how Housing inventory let's also have a look At my own analysis of alos research data As well regarding hous inventory because One year ago at this time there's around 415,000 homes for sale now there's Around 57,000 so an increase of about 9 92,000 more homes for sale from one year Go and that represents a 22% rise on a year- ofe basis let's take A look at this as well because let's Have a look at the year-to DAT growth uh In the amount of houses for sale or Housing inventory compared the same time Frame in 2023 so there's slightly more houses for Sale right now compared to the start This year uh that represents a only a 2% Increase in the amount of houses for Sale year-to dat when looking at the Same time frame in 2023 that was the
Start of 2023 through mid-march last Year uh inventory actually decreased by 12% so the big picture here or in other Words um Supply was falling um from January through mid-march last year Whereas this year we're seeing a small Gain of 2% let's have a look at alus Research.com website regarding this so To start the year in 2023 around 47 2,000 homes for sale inventory decrease Until we hit um Mid April last year but By the time we hit this time last year Mid March um we're at 414,000 just under 415,000 so inventory was decreasing last Year whereas this year inventory is Barely squeaking out of gain has been More or less flat all year but more Recently uh increasing slightly because Last week we're at around 500,000 homes For sale now it's at 57,000 also comparing the past several Years at 57,000 way above 2022 2021 but below 2020 as well as 2019 like I mentioned Earlier one of the main reasons why Inventory levels or the amount of houses For sale Nationwide is up from 12 months Ago is due to a significant increase in The amount of people who are deciding to List their houses for sale that Rose by Nearly 18% last week in fact it Increased by 17.8% that was the biggest increase
Since May of 2021 the biggest year VI increase in About 3 years absolutely crazy it's also Higher than the same time frame last Year for 21 consecutive weeks as well um Something to keep in mind though is that Even though the number of newly listed Houses for sale is uh Rising by double Digits for um over one month now there's Still around 20% fewer compared to preco Levels so the amount of new listings Even though it's up by uh 18% year-over Year we're still down compared to what Is normal looking at pre pandemic levels All right let's change gear uh slightly Here and talk about days in the market Uh this is a time frame when a homeowner Lists their home for sale until they Accept an offer from a home buyer it's Not recorded though until the house is Actually um closed or the sales Finalized therefore this is a laggy Indication of Euro saling Market any Case um it last week it took two days Faster to sell a house compared to the Same time frame in 2023 so houses are selling faster for The past 24 weeks in a row before that We had 50 58 consecutive weeks in which Houses were taking longer to sell Compared to the previous year let's also Talk about the increase in the number of Reduced price listings so the number of Reduced price listings increased by
36.1% on a year-year basis this marks The8 consecutive week of year-over-year Gains it has been accelerating each week As well and that's right here so for Example in January 27th we're only at 5.8% but uh every single week after uh The number of reduced price listings has Been increasing also this gain of 36% is a biggest year- ofe increase Since April of 2023 pretty significant um but it's not As big is the Triple J gains we saw in November of 2022 through March last year We saw gains over 100% now we s we're Seeing gains at 36.1% now you may be asking yourself why Are we seeing a rise in the number of Reduced price listings and that is due To two main factors in my opinion number One housing inventory rising in other Words when inventory increases there's More options for home buyers and Therefore more competition amongst home Sellers and therefore we're seeing more Price reductions on top of that home Buyers are still sitting on the Sidelines overall uh or I should say a Significant amount of home buyers are Sitting on the sidelines due to high Rates as well all right that was the lot Info to go over in today's video so just Like my previous videos here's a summary For you guys and also I included some um Details regarding rates and also other
Things been happening with our US Housing market as of late as well so Number one asking prices in the US um Again real estate is local but today's Video is about National Trends anyways Asking prices are flat um but the Previous week in the previous week it Was down on a year- ofe basis the last Time that happened was way back in July Of 2023 also asking prices have been Relatively stagnant for about one month Now and this is from an increase of Housing inventory or Supply um more Price reductions and 7% mortgage rates As well number two Health inventory Increased by 24% last week that was the Biggest year- of- your increase since May of 2023 uh this is likely due to a from Lackluster home buying demand and a Significant rise in the number of newly Listed houses for sale but even though The number of new listings posted the Biggest year of your increase since May Of 2021 nearly a threeyear high they're Still around 39% % fewer houses for sale Compared to the same time frame in 2019 However as I note right there the gap Between um inventory levels right now Compared to 2019 is actually getting More narrow about a month ago the Gap Was actually over 40% now it's at 39% Number three average 30-year fixed Mortgage rates have decreased by about 1
Percentage Point ever since October uh 2023 that means that buyers have Approximately an increase in their Purchasing power um up by 10% but when Counting for the fact that home prices Have been on the rise ever since October Of 2023 um one would say that um buyers Purchasing power is actually worse today Than it is back in October 2023 also Because around 89% of homeowners who Have a mortgage on their house um have An interest rate below 6% uh that was Based on uh a fairly new uh report from Redfin that was based on third quarter 2023 is data that has been limiting the Amount of people listing their houses For sale and thus keeping hous inventory Well below 2019 levels we do not need Inventory to rise to preco levels though In order to see home prices decrease That's exactly what happened in 2022 we Saw inventory increase but not getting In close not not getting close at all to 2018 and and 19's levels but despite That home prices decreased though Because inventory doubled in less than 6 Months also number four the share of Price reductions is flat um from this Time last year but it's much higher Compared to the past several years uh Number five houses were selling faster Or have been selling faster for the past 24 consecutive weeks again though that's
A laggy indication of our us how you Market so what are some potential huge Changes ahead and of course I am not a Real estate market fortune teller number One average uh 30y year fix rates have Decreased by about 1 percentage Point Ever since October uh last year that Means we have approximately a 10% Increase in buyers purchasing power but Again when counting for the fact that Prices have been increasing since October um one could argue that um buyer Purchasing power is worse than it was Back then because housing affordability Is still very very low and a big issue Number three early signs of home buying Demand have been absolutely all over the Place and very volle to say the least uh Due to all the changes happening in our Housing market the most recent Trends um Regarding the amount of people who are Submitting loan applications to buy Houses uh that's from the MBA for the Week ended uh March 15th uh they Reported on Wednesday just a couple days Ago that the amount amount of Applications decreased by 14% on a year- Ofe basis in the previous week it was Down by 11% so the year-over-year Changes getting worse uh which is Implying that potentially home seller Sals uh could falter in the coming Months if we continue to see a lack of People submitting loan applications and
Early indication of home buying also uh Nard or the National Association rors Reported that pending home sales in January decreased by 9% from January of 2023 compare that to um new home sales For new home construction that actually Increased by 2% on a year ofy year basis During that same time frame so a Doconomy in our housing market where Sales of new home new home construction Have been holding up relatively well uh Compared to uh the resale Market of Existing houses and by the way I know It's um mid April I'm talking about January January data but Nar will not Report pending home sales for about Another week um and they'll report uh February's numbers so uh once they Report that of course I'll update this Um uh narrative here and of course real Estate is local like I mentioned number Four the direction of our US housing Market in my opinion will depend on the Balance between supply and demand Unemployment inventory levels and Mortgage rates as well number five Absolutely the most important one I Appreciate you guys uh watching my video Uh today and all my videos as well if You guys are already subscribed I Appreciate you also if you guys are not Subscribed you want to learn about the Latest house market data in unbiased Manner here uh then I invite you to
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