CNBC recently posted an article on a "worrying supply trend" in the housing market. We will explore in more detailed below.
Key takeaways
The Housing Market is heading into 2025 with a worrying
supply trend:
Active Listings in November were 12.1% higher than they were
in November 2023 and hit the highest level since 2020.
More than half of those homes stayed on the market for at
least 60 days without going under contract.
The latest report from S&P Case Shiller showed prices up
nationally 3.6% compared to October 2023.
Weitz Take: For those that follow this blog, this is not a surprise
whatsoever. We expect to see more distressed sales, increasing inventory and
eventually more price drops. This will be especially interesting when the new
ADU laws (I'll be posting an overview in the coming days/ week) are put in place in cities around the State (Washington State).
As I’ve mentioned in previous blogs, I believe we have seen
the highest of pricing in general and expect more pressure on prices as we move
deeper into 2025. The only thing that would change that would be a fairly steep
reduction in interest rates (or inventory goes down dramatically again) but for now, that doesn’t seem to be in the works.
For more information on Snohomish Commercial Real Estate, consider contacting a Snohomish Real Estate Investment Broker.
My Contact
Scott Weitz
Scott@WeitzCommercial.com
T: 206.306.4034.
www.weitzcommercial.com
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