2024 market saw a few distinct changes.  Higher inventory and massive price reductions.  We are already starting to see a small change in pricing – roughly 5 – 7% depending on location.  If inventory keeps rising, we could see the pricing change go up.

Here’s how December Year over Year looks:

As you can see inventory is up 35%.

Yet the number of properties under contract is about the same.  While that number has not gone down, what happens when you have more homes for sale and the same or fewer buyers?  Law of supply and demand is in play.  That is why the absorption rate (months of inventory) has gone up so much.

The statistics are telling us the slow down will continue this year.  With mortgage rates higher and mortgage applications at their lowest levels ever, we could see a double-digit drop in pricing this year.  I’ll be watching!