30 year mortgage rates keep climbing
Tulare County Association of Realtors website publishes regular monthly figures on the state of the local real estate economy.
This month’s trend is not your friend as it takes 31% longer to sell your home than just a year ago. Today it is more than 40 days using the latest November numbers.It is even worse compared to 3 years ago -up 121% from that time when homes were selling in under 20 days on average.
Sales are down 13% even though listings are up 8% for the first two weeks of December compared to a year earlier according to Trendgraphix.
If you are a seller, the good news is that the average home is selling for about 12% more than a year ago – about $426,000 this month.
The trends are the same nationally.
Redfin reports Dec 31 that over half of home listings last month sat on the market for 60 days or longer—the highest November share since 2019. That’s a major reason housing supply jumped 12%.
Active listings—the total number of homes for sale—climbed to the highest level since 2020 in November on a seasonally adjusted basis, rising 0.5% month over month and 12.1% year over year.
For all the talk of America’s housing shortage, one would think that’s great news. But the story is nuanced; a major reason for the jump in supply is a pileup of unsold homes, many of which buyers have deemed undesirable because they seem overpriced.
Over half (54.5%) of home listings in November sat on the market for at least 60 days without going under contract. That’s the highest share for any November since 2019 and is up from 49.9% a year earlier. The typical home that did go under contract in November did so in 43 days, the slowest November pace since 2019.
Mortgage rates don’t help
Meanwhile 30-year mortgage rates have unexpectedly risen almost a full point since October according to Zillow,making homes less affordable
30 year mortgage rates per Zillow