A M. Appraisals Blog

Housing Supply Overview - January 2025:

U.S. new-home sales increased 3.6% month-over-month and 6.7% year-over-year to a seasonally adjusted annual rate of 698,000 units, according to the U.S. Census Bureau. The median sales price for new homes was up 2.1% year-over-year to $427,000. There were about 494,000 new homes available for sale heading into January, representing an 8.5-month supply at the current sales pace. For the 12-month period spanning February 2024 through January 2025, Pending Sales in the Consolidated Multiple Listing Service, Inc. region was up 3.2 percent overall. The price range with the largest pending sales gain was the $1,000,001 and Above range, where sales increased 51.6 percent. The overall Median Sales Price improved 1.5 percent to $273,999. The property type with the largest gain was the Condos segment, where prices improved 6.9 percent to $203,000. The price range that tended to sell the quickest was the $150,001 to $250,000 range at 41 days. The price range that tended to sell the slowest was the $1,000,001 and Above range at 54 days. Market-wide, inventory levels was up 28.0 percent. The property type with the largest gain was the Condos segment, where the number of properties for sale rose 60.9 percent. That amounts to 2.6 months of inventory for Single-Family Homes and 2.9 months of inventory for Condos.


Monthly Indicators - January 2025:

U.S. existing-home sales advanced for the third straight month, climbing 2.2% to a seasonally adjusted annual rate of 4.24 million units, a 10-month high, according to the National Association of REALTORS® (NAR). Sales were up 9.3% year-over-year, driven largely by purchases of homes priced $500,000 and above. Month-over month, sales rose in the South, Northeast, and the West but fell in the Midwest, with all four regions reporting year-over-year gains. New Listings were up 8.0 percent to 1,513. Pending Sales increased 2.0 percent to 1,109. Inventory grew 28.0 percent to 2,893 units. Prices moved higher as Median Sales Price was up 3.9 percent to $268,000. Days on Market increased 19.6 percent to 55 days. Months Supply of Inventory was up 23.8 percent to 2.6 months, indicating that supply increased relative to demand. According to NAR, total housing inventory was 1.15 million units heading into January, a 13.5% decrease from the previous month but a 16.2% increase from the same period one year earlier, for a 3.3-month supply at the current sales pace. Housing supply remains down compared to pre-pandemic levels, and the limited number of homes on the market continues to push sales prices higher nationwide, with the median existing-home price rising 6% year-over-year to $404,400.