A Fresh Look at the Housing Market | Hilton Head Island, SC

[Ron Williams]

If you're keeping an eye on the U.S. housing market, you've probably noticed some pretty interesting shifts happening lately. The National Association of REALTORS® (NAR) just dropped some numbers, and guess what? The housing market is on a bit of a hot streak. Existing-home sales have jumped a whopping 9.5% to a seasonally adjusted annual rate of 4.38 million units. This isn't just good news; it's the biggest monthly leap we've seen in a year, and it's even left the experts pleasantly surprised.

Let’s Break Down What’s Happening

Here’s a quick snapshot of the latest trends that show the market's heating up just in time for the spring selling season:

- New Listings: Barely nudged up by 0.1 percent to 680. It's like a small wave hello, letting us know more homes are trickling in.

- Pending Sales: Took a slight dip of 3.0 percent to 518, hinting that everyone’s jumping on good deals fast.

- Inventory Growth: This one’s big—inventory shot up by 44.6 percent to 1,469 units. More houses on the market mean more choices for buyers.

- Pricing Upswing: The Median Sales Price edged up 3.3 percent to $516,555. Houses are fetching a pretty penny, showing they’re still a hot ticket.

- Market Pace: Houses are taking a bit longer to sell, with Days on Market up by 35.6 percent to 61 days. And with Months Supply of Inventory ballooning by 54.5 percent to 3.4 months, buyers might finally catch a break to make their move.

What’s Fueling the Fire?

So, what's behind this surge? A sweet spot in December saw mortgage rates dip, encouraging more folks to buy. Plus, there's been a boost in how many houses are up for grabs across the country. NAR's numbers show a healthy bump in inventory—a 5.9% month-over-month increase and a 10.3% rise year-over-year, rounding out to about 1.07 million units up for grabs.

Despite the bigger selection, buyers are still out in full force, pushing the median existing-home sales price up by 5.7% from last year to $384,500. It’s the eighth straight month of price hikes, proving homes are still a hot commodity.

What This Means for You

Whether you’re thinking about buying, selling, or just love keeping tabs on the market, these trends offer a lot to think about. The market’s picking up speed, with plenty of opportunities to find a great deal or get a good price for your place. But it’s also a heads-up to stay sharp, keep an eye on those mortgage rates, and be ready to jump when the time feels right.

[Jacopo Iasiello]

Thanks Ron! 

[Michael Keffer]

Do you think prices will come down with more supply? What’s keeping buyer demand high? I feel like everyone went nuts post covid with vacation purchases and that has to come back to reality. Or maybe this is just the new normal. Some spots in the country just consistently go up in value. 🤷🏻‍♂️

[Ron Williams]

Michael:

Not sure why I just now saw this. I think condos are starting to come down a little bit. But the reality is there is no land left to develop, so these prices are going to stay for a little while. We are currently watching to see what happens this fall. HHI is seasonal and some sellers get motivated to sell late fall through the end of the year. Condos seem to be the spot where some deals might be found, but we will see.  Occupancy was down this summer. Probably more of a reflection of the economy than anything else, but certainly something to keep an eye on.