Home Inventory Expected to Improve as Mortgage Rates Decline

By Helen Adams Realty - February 20, 2024

Canopy Realtor® Association Market Updates

Reprinted from January 2024 CRRA Monthly Indicators

U.S. existing-home sales slipped 1.0% month-over-month and were down 6.2% year over-year as of last measure, while pending sales jumped 8.3% from the previous month, marking the largest gain since June 2020, according to the National Association of REALTORS® (NAR). Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with NAR forecasting a 13% increase in existing-home sales this year compared to 2023.

New Listings were up in the Charlotte region by 10.1 percent to 3,567. Pending Sales increased 1.8 percent to 3,554. Inventory shrank 6.6 percent to 5,554.

Prices moved lower as Median Sales Price was down 0.8 percent to $371,853. Months Supply of Homes for Sale was up 6.7 percent to 1.6 months, indicating that supply increased relative to demand.

Despite tepid sales activity, the persistent shortage of housing supply has helped prop up home values nationwide, with the median existing-home price rising 4.4% year-over year to $382,600, according to NAR. Total unsold inventory was at 1 million units heading into January, marking an 11.5% decline from the previous month, for a 3.2 months’ supply at the current sales pace. Nationally, listing activity has started to pick up, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.

A Closer Look