December 2024 Housing Supply Increase Signals Market Shifts

The December 2024 housing supply increase has been a notable development in the U.S. real estate market. According to Redfin, active listings rose by 12% year-over-year, marking one of the most significant surges in housing availability seen in recent months. This increase offers a nuanced look at the evolving dynamics of the housing market as we approach the end of the year.

Graph and data from Redfin | Discover the December 2024 housing supply increase, with active listings up 12% year-over-year, marking a significant shift in the U.S. housing market.

December 2024 Housing Supply Increase Reflect Market Trends

A primary driver behind the December 2024 housing supply increase is the extended time many homes are spending on the market. With mortgage rates hovering at a high 6.85%, affordability concerns have slowed buyer activity, causing unsold inventory to accumulate. Median days on the market increased by six days compared to last year, now standing at 45 days. The balance between supply and demand is shifting, as evidenced by the four months of available housing supply, signaling a transition from a seller’s market toward more balanced conditions.

Regional Variations in Housing Supply

While the national market has experienced a general increase, some metropolitan areas are seeing particularly stark changes. Philadelphia led the way with a 17.1% year-over-year increase in median sale prices, while cities like Milwaukee and Cleveland also posted double-digit gains. On the other hand, metros like San Antonio and Orlando recorded decreases in new listings, highlighting regional differences in market conditions.

What This Means for Buyers and Sellers

The December 2024 housing supply increase could be a mixed blessing depending on perspective. For buyers, the uptick in listings may translate to more options and negotiating power, particularly as fewer homes are selling above list price. Redfin’s data indicates that only 23.3% of homes sold above their asking price, down from 25.1% last year. Sellers, however, may need to adjust expectations as competition grows and average sale-to-list price ratios dip slightly to 98.4%.

A Look Ahead

As we move into 2025, the December 2024 housing supply increase provides critical insights into market conditions. Mortgage rates remain a pivotal factor influencing both buyer behavior and housing inventory levels. It will be essential to monitor how these variables interact in the coming months. Redfin’s comprehensive data highlights the importance of staying informed about market trends to make well-rounded decisions, whether buying, selling, or investing in real estate.