November 2024 Housing Market Explained

The November 2024 housing market marked a pivotal moment in real estate, characterized by its slowest pace in five years. With persistently high mortgage rates hovering near 7%, potential buyers and sellers found themselves at a crossroads, creating unique challenges and opportunities. Realtor.com’s latest report sheds light on the factors shaping this trend, offering insights into shifting home prices, rising inventory, and regional variances.

November 2024 Housing Market Explained

High Mortgage Rates Slow Market Activity

According to Realtor.com, the November 2024 housing market experienced a significant slowdown, with the typical home sitting on the market for 62 days—11 days longer than last year. While the seasonal cooling of the market is expected during this time of year, high mortgage rates amplified the effect, making it difficult for many buyers to move forward.

“Higher mortgage rates continue to erode buyer purchasing power, making it harder for many would-be homeowners to afford the homes they want,” said Ralph McLaughlin, Realtor.com’s senior economist. This decline in purchasing power has left homes lingering on the market and contributed to the highest active housing stock levels since December 2019.

Housing Stock and Price Trends

While elevated mortgage rates sidelined buyers, the increase in housing stock provided a silver lining. Active listings rose 26.2% compared to November 2023, giving buyers the most options they’ve seen in years. However, fewer new homes entered the market, with new listings growing by only 2% year-over-year—a notable drop from October’s 4.9%.

Home prices showed slight declines, with the median price dropping 0.7% year-over-year to $416,880. The growing availability of smaller, more affordable homes drove this trend, offering some relief to budget-conscious buyers. Yet, sellers remain cautious, with fewer properties undergoing price reductions compared to last year.

Regional Variances in Housing Stock

The November 2024 housing market revealed distinct regional disparities. Buyers in the South benefited from the largest inventory increase, with listings rising by 34.8% year-over-year. The West followed closely with a 29.2% increase, while the Midwest and Northeast saw more modest gains of 18.9% and 9.7%, respectively.

San Diego led major metros in housing stock growth, with a 52.5% surge, followed by Miami (50.9%) and Denver (50.7%). New listings were strongest in Birmingham, AL (14.2%), and Las Vegas (13.9%), providing more choices for buyers in these areas.

most expensive cities in the world for home buyers (6) — San Diego, CA

Opportunities for Buyers and Sellers

Despite the challenges, the November 2024 housing market presents opportunities for both buyers and sellers. Buyers can take advantage of increased inventory to find more affordable options and negotiate on properties lingering on the market. For sellers, understanding local trends and adjusting pricing strategies may help attract buyers in a cautious market.

As Danielle Hale, Realtor.com’s Chief Economist, noted, “Although many buyers are still stretched thin on housing affordability, today’s shoppers have some advantages.” The shifting market conditions hint at the possibility of greater stability in the months ahead, as the industry adjusts to new mortgage norms.

The November 2024 housing market reflects a period of transition, shaped by high mortgage rates, declining home prices, and increasing inventory. While challenges persist, the evolving landscape offers opportunities for those ready to adapt. As Realtor.com’s report highlights, understanding these trends is crucial for navigating the current market and planning for the year ahead.