As the dust settles on the recent NAR settlement changes, it’s time to assess their impact on the housing market data we monitor weekly. Will these changes disrupt the smooth flow of real estate transactions as people adjust to the new regulations, much like the turbulence caused by the YOU WANT incorporation in 2015? Let’s delve into the latest data to see if any similar patterns are emerging in the wake of these changes.
Weekly Housing Inventory Data
- Inventory growth has slowed below the target level of 11,000-17,000 due to recent drops in mortgage rates. This drop is expected since higher rates typically spur more inventory growth by dampening mortgage demand.
- Last week, housing inventory increased by 6,271, a modest number indicating stability.
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Comparing inventory figures from the same week last year, this week’s numbers sit at 704,744, marking the yearly inventory peak for 2024.
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For context, the inventory was at an all-time low in 2022 at 240,497.
New Listings Data
- Although 2024 marks the second-lowest year for new listings historically, weekly data showed growth from the previous year, signaling a positive trend.
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The numbers for the last week showed 64,595 new listings, up from 2023’s 54,584.
Price-Cut Percentage
- Price cuts are a common occurrence, with about one-third of homes taking a price cut in a typical year.
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The rise in mortgage rates over the last year has resulted in a growing number of price cuts, especially with increasing inventory.
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Despite a weekly growth in price-cut percentages, the implications of the NAR settlement changes are inconclusive based on this data.
Weekly Pending Sales
- Real-time demand, indicated by the Altos Research weekly pending contract data, showed a pick-up in demand on a week-to-week basis.
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Although there was some change in year-over-year growth, no significant impact of the NAR settlement changes is evident yet.
Conclusion
While the data offers insights into various aspects of the housing market, there is no conclusive evidence of the NAR settlement changes impacting the trends significantly. It’s essential to monitor these patterns for the next few weeks to assess any lasting effects.
The upcoming week promises a mix of housing reports and personal consumption expenditure inflation data, providing valuable insights into the market’s trajectory. As we navigate through these changes, staying informed and adaptable is key to thriving in the ever-evolving real estate landscape.
