Well as official for the first time Since late June this year housing Inventory or the number of Houser sale Nationwide is up compared to one year Ago uh I'm going to share why this is Happening but also going to share what's Happening right now regarding home Prices housing inventory new listings And also this share of price reductions As well uh this is based on my own Analysis of rcom's latest data so here's The acttion report from realor.com just Posted last Thursday and just like my Previous videos I did not even read it Instead go to uh realtor.com SL Researchdata uh I also provide a link in The video description below here but Click on this link right here it more or Less takes you to this information so Let's first talk about um asking prices Nationwide this is for the week ended November 11th this year so asking prices Um have increased By7 % compared the same week of 2022 uh prices have been relatively flat Or up very very slightly uh up by about 1% or less every week since late July This year we're not seeing a sharp Pullback in prices um this year due to Limited inventory levels of existing Houses and because prices were falling At a much faster Pace last year compared To this year okay let's now talk about House inventory which is active listings
The total number of houses for sale of Existing houses here that was a gain of 6% uh compared to just 12 months ago That was the first increase in the last 21 weeks inventory is up year-over-year In my personal opinion due to two main Reasons number one inventory grew much Faster last year compared to this year And I'll share some Trends regarding That here a little bit and housing Demand is down uh so as fewer home sales Occur this actually causes inventory Rate to actually increase um something I Have to mention again though um I don't Want you guys to get the wrong picture Here because there's probably a lot of Misinformation out there regarding why Inventory is now up um it's not due to a Giant surge of new listings in fact new Listings are still down uh or are still Down compared to previous levels here And on top of that we are seeing a Seasonal decrease of new listings as Well but new listings are not falling as Fast as last year's levels now speaking Of that here's a look at um new Lis Scenes according to redin let me just Zoom in here so this is on their uh Data Center website which is redfin.com Newws Datacenter and again I provide Links to all my sources and my videos in The video description below here so the Listings right now according to redin uh For the Forex ended November 12th is up
By 3.3% but as you guys can see here we're Not seeing new listings shooting up in Fact new listings have been falling ever Since the late spring months so even Though we're up on a year year basis This does not mean that new listings are Increasing what this means is uh let me Just exclude 2020 and 2021 so in 2022 which is this block line Right here new listings fell big time as Rates absolutely surged whereas this Year we are seeing a decrease but not Decreasing at the same levels last year That's one of the main reasons why we're Up by 3.3% let's also discuss the uh Latest numbers from alos research.com as Well uh regarding inventory levels Because that is virtually flat on a Year-year basis only a gain of 327 more Houses our sale right now compared to 12 Months ago uh so we're very very close To being in positive territory according To them even though r.com just reported Last week that inventory levels are up Slightly here so I would imagine that um Alos uh will report a gain of inventory Levels compared to the previous year Here very very soon so something that You guys should be aware of as well is What happened last year compared to this Year so uh this year we're seeing 98,000 more homes for sale compared to The start this year so year to dat up by
21% that's a gain of 98,000 more House of sale year to date What happened last year though inventory Levels absolutely skyrocketed right so Compared to the first week of 2022 there was a gain of 278,000 more homes for sale Compared to this time last year so Year Date at this time last year was up by 278,000 compared to only 98,000 this Year a gain of 21% uh whereas last year It surged by 95% so inventory has been increasing Very slowly though um this year According to data from alos uh but Supply is still Rising due to home Buying demand decreasing so nor Supply Uh decreases during this time of year so Again highly unusual that we're in mid November and inventory levels have not Peaked thus far also something to keep In mind though is that even though uh Inventory levels are slowly increasing Right now we're still down by about 35% Compared to the same week of 2019 now Here's a look at inventory levels Exactly what I shared here year to date Which is the beginning right here we Started at 47200 ,000 House of our sale Now we're at about uh 570,000 a gain of About 20% whereas last year it surged We're at what was this at 292,000 for The first week of 2022 then it surged to uh nearly 570,000
By the time we hit mid November that was A giant increase of 95% compared to the Only 20% gain we're seeing this year so Big picture here when looking at level Last year uh inventory levels is Virtually flat but at about 570,000 Right now still much higher compared to 2021 um also a little bit um higher Compared to 2020 but about 35% less than This time in 2019 also less than 2018 as well when at That time there was around 93,000 House of our sale now there's About 57 7,000 now here's something that Will also probably cause some confusion As well so rs.com has reported that uh New listings this is a measure of the Amount of people listing their house for Sale increased by 6.4% on a year of your basis uh so new Listings um are up compared to last Year's levels now for three consecutive Weeks again though new listings are up On a year-over-year basis due to the Fact that new listings were falling much Faster at this time last year something Else worth mentioning as well is that New listings before these previous three Weeks here were down on a year-over-year Basis for 68 consecutive weeks so new L Scenes were falling on a year-year basis For more than one year so this is a very Big change though uh because for the Previous 3 weeks we're actually up
Year-over-year okay let's change gears Uh slightly here and talk about um the Changes of days on the market the time Frame when a home seller lists their Home for sale until they accept an offer From a home buyer that's days in the Market uh again though this is a lagging Indicator because this is a measure of That time period based on a closed home Sale so any case uh last week it took Two days faster to sell a house compared To the previous year so houses are Selling faster for the past 6 weeks in a Row before that they took longer to sell For 58 consecutive weeks okay let's now Talk about um the number of price Reductions Nationwide because for 24 Consecutive weeks we've been seeing Decreases in the number of price Reductions Nationwide uh this is Compared to the triple digigit gains we Had to start the year and last week it Decrease by 8.3% compared to the same week of 2022 now I have some theories Regarding Why why is the number of price drops uh Decreasing here in my personal opinion It has been negative ever since June due To two main reasons number one limited Amount of hous of sale Nationwide which Of course means we have fewer options of Houses to buy and therefore that's Leading to fewer price reductions from Home sellers because they don't have a
Lot of competition for their houses uh Being listed for sale and number two Price drops surge l last year in Contrast the share of price drops is Relatively flat this year so here's Exactly what I mean by this because Here's a chart going back to uh 2018 so The share of price drops right now is at 39.8% this is actually the first Decrease we've seen in quite some time a Very small one a decrease of what0 0 1% But uh it appears that potentially the Share of price shops may have peaked This year but at 39% right now a little Bit lower compared to last year this Time at 43% but at 39% still much higher Compared 2021 as well as 2020 it also is higher though compared To 2019 though at 36% and also higher compared to 2018 at Also about 36% as well all right I know That was a lot of information to share In today's video so here's a summary for You guys of course if you guys are still Watching today's video I appreciate you Uh please hit like button uh number one Asking prices have been relatively flat Or up very very slightly year-over-year Every week ever since late July this Year home prices and when I say that I'm Talking about the meeting asking price Haven't been dropping from a year ago uh
Very much due to limited inventory and Because prices were were falling at a Much faster Pace last year number two Heal's inventory increased by 6% year Forye according to real.com that was the First increase in the last 21 weeks Inventory still has been increasing very Slowly this year we're up by about 98,000 more homes for sale compared to The start this year that's an increase Of 21% year today compared to the surge we Experienced last year a giant increase Of 278,000 more homes for sale year-to date At this time last year that was a gain Of 95% also new listings remain at low Levels even though they're up compared To 12 months ago the low amount of new Listings is causing inventory to stay at Historically low levels um up or sorry Down by about 35% compared to same week of 2019 um Also something I did not mention in Today's video and let's just kind of Talk about very quickly here the average Uh 30-y or fix uh mortgage rate has Remained elevated but has decreased by About 60 basis points compared to about One month ago um also the share price Reductions is high or higher right now Versus the same week of 2018 and 2019 but lower than 12 months ago so 12
Months ago Uh the share price drops was at 43% now it's at 39% number five houses Are selling faster um right now for the Past six weeks again this is on a National level every housing Market's Different uh so for comparison sake they Took longer to sell for the previous 58 Consecutive weeks that was August 2022 Through August this year of course That's a lagging indicator of what our Housing market was like you know one or Two months ago uh what are some Potential huge changes ahead and of Course a disclaimer I am not a real Estate market Fortune dollar number one Average rates or average 30-year fix Rates are About7 percentage points or about 70 Basis points um higher compared to 12 Months ago uh that's a approximately a 7% decrease in buyers purchasing power Also there's a lot of challenges that Home buyers are facing right now we have Record low housing affordability and Very low inventory levels of existing Houses elevated prices and rates and of Course a lot of uncertainty number two Housing affordability is a huge hurdle For home buyers especially compared to The Past uh several years so rates have More than doubled and of course prices Are up by about 27% from September of 2020 that's based
On my own analysis of Nars data um also Rates remain very much elevated and on a National level home sold prices have Increased by about 6% year-to dat Based On data from redfit uh in my opinion we Can't have high home prices High rates And expect home prices to go up forever In my personal opinion we have a Seasonality uh ahead of us here and of Course all these affordability Constraints which should keyword should Put downward pressure on prices For the remainder of the year which my Personal opinion is very much needed if We want to have a more affordable Housing market which would be healthy by The way number three early signs of home Buying demand of course have been all Over the place due to all the volatility In our housing market and also due to uh The volatility rates as well the most Recent stats we have that show that Applications for Home Loans these are Applications for people looking to buy a House using a loan uh decreased by 12% Year-over-year last week according to The most recent data we have from the MBA and based on the mba's purchase Index um that's roughly on par with the Lowest levels since approximately 1995 therefore homey demand is still Very very low also the National Association rors reported that pending Home sales in September for existing
Houses decrease by 11% uh compared to September of 2022 to the third lowest reading on Record can you say a huge decrease in Home buying demand in St contrast though New home construction sales and that's Defined by the US Census buau as a Contract um signed or a purchase Contract signed between a home buyer and A home builder or a deposit taken so for That same time frame new construction Sales increase a whopping 34% compared to a decrease of 11% of Existing houses for sale so it appears Our housing market is highly rate Dependent and of course the data coming In is ever changing and of course real Estate of course is very much local what I'm sharing in today's video is on a National level and of course it may it May vary compared to what you're seeing In your neck of the woods number four Home sellers and buyers have exited this Housing market lead to a dip of new Listings and pending home sales the lack Of new supply of existing houses uh Since last summer has led to inventory Remaining at historically low levels if Homeowners continue to decide that now Is not a good time to sell our houses That of course will limit housing Inventory the direction of our US Housing market will likely depend on Unemployment mortgage rates inventory
And of course the balance between supply And demand that's basically economics 101 and number five I appreciate you Guys so much for watching today's video Of course for supporting my YouTube Channel if you guys are still watching Today's video then please like and also If you haven't subscribed just yet I Invite you to do so because I post Frequent housing market updates so you Guys can be more informed and with that Said I appreciate you guys again and We'll see you in the next video have an Awesome Day [Music]
