What happened in Northmoor Estate's market in 2024?
MEDIAN NUMBER OF ACTIVE LISTINGS
Entire Market
Northmoor Estates
In these two data sets we see a somewhat strange anomaly. It seems strange that active listings continue to steadily increase throughout the entire year. You may be asking yourself “why would the month of December have the highest amount of active listings?” This may be caused by the fact that homes stay on the market longer during slower seasons. This is due to decreased buyer demand and sellers selling their homes over the holiday season. Days on market increase and home inventory does that same due to seasonality. In the more active seasons like spring and summer homes turn over and sell quickly thus statistically showing lower inventory.
Another reason that this odd data pattern might be occurring is due to interest rates. We have seen a pattern throughout 2024 of people believing interest rates will drop but then continuing to rise. We have found that buyers are no longer following the “seasonality” of buying real estate. Instead we see buyers deciding to jump into the market at unexpected times due to affordability and the belief that interest rates will only continue to rise.
MEDIAN NUMBER OF CLOSED LISTINGS
Entire Market
Northmoor Estates
When looking at these two sets of statistics we can see just how badly the market has been hit by interest rates. When looking at the entire market we see a steady decline in the number of closed listings from January of 2023 to January of 2024. This decline could be caused by multiple factors, the largest ones being high interest rates and low affordability. The market is continuously running into the issue of having to drop home prices below market value to evoke any type of buyer engagement. This is because interest rates are so high right now that buyers have opted to make up for them by only buying homes marked below market value.
Although not as clear, Northmoor Estates shows the same information as the entire market. Northmoor’s statistics show a huge spike in closed listings during the late fall and early winter months. Like we have said before, this goes against “normal” real estate seasonality. This spike in closed listings may be due to the fact that the winter time is generally the best time to buy because it has the highest affordability. As realtors we always recommend buyers to buy homes in the months of September – February. Although there is less inventory in the market for buyers to look at, there is much better affordability, less buyer competition and better price flexibility when it comes to looking at homes during this time.
Median number of days on the market
Entire Market
Northmoor Estates
These data sets show how homes will tend to stay on the market for longer during the winter seasons. Buyer interest drops during the late fall and early winter seasons causing a the number of days homes stay on the market to increase during this time.
