November Housing Market Update: Why U.S. Home Sales Are Struggling Despite Strong Demand

 

November Housing Market Update: Why U.S. Home Sales Are Struggling Despite Strong Demand

            Here's a recent CNBC post on the state of the US Housing market + an overview 

The latest housing data shows something unusual in the U.S. real estate market: people want to buy homes, but home sales are still struggling, and the biggest reason isn’t interest rates or a lack of buyers—it’s the lack of available homes for sale. In a recent CNBC interview, real estate analyst Diana Olick breaks down what’s happening in the market and why November existing-home sales reflect a supply problem more than anything else.

November Home Sales: Slow Movement, Not a Market Collapse

Existing-home sales numbers for November came in weak, and while that might sound alarming at first glance, the story behind the numbers matters. Sales activity hasn’t crashed—it’s simply slowed because there aren’t enough homes to sell. Buyers remain in the market, but the limited selection is making it difficult to complete transactions.

In other words, this is a supply-driven slowdown, not a demand-driven one.

Inventory Remains the Biggest Challenge

One of the clearest themes from the November report is that inventory continues to stall. Fewer homeowners are listing properties, many are still “locked in” with lower mortgage rates, and new construction alone can’t fill the gap. This tight supply means:

• Fewer choices for buyers
• Continued competition for desirable homes
• Ongoing pressure on pricing
• Difficult conditions for first-time buyers

Even as economic conditions shift and seasonal slowdowns normally occur late in the year, the real challenge continues to be the limited number of homes available.

What This Means for Buyers and Sellers

For buyers, the message is patience and preparation. Well-priced homes are still selling quickly, and competition remains real because demand hasn’t disappeared.

For sellers, the story is almost the opposite. Limited inventory can work in your favor. Homes that are priced correctly and well-presented continue to attract solid interest because there simply aren’t enough alternatives on the market.

For the overall market, the takeaway from November is clear: housing activity is being held back by supply, not lack of interest.

Bottom Line

The November housing report shows slow existing-home sales, but the slowdown is driven primarily by one factor—not enough homes on the market. Until inventory improves, we can expect this dynamic to continue: motivated buyers, limited options, and a market that feels tighter than the headline numbers may suggest.

Weitz Take:

This is interesting. I agree with the facts, but my interpretation of it as different as we take into account that many properties are being ‘taken off the market’ for not selling which would contradict this CNBC analysis. I’d argue that sellers are simply asking for prices that buyers are unwilling or unable to pay. In fact, CNBC had a news story about a month ago that addresses this exact issue so its a bit shocking to see this analysis now. 

Sellers take homes off market 

Overview: 

*     Roughly 15% of the homes that were delisted in September were at risk of selling at a loss, according to Redfin.

*    Redfin found 70% of homes listed in September were on the market for 60 days or longer.

* The supply of homes for sale is about 15% higher now than it was a year ago.

For more information Everett Commercial Real Estate or Snohomish Commercial Real Estate, we are happy to help.

Scott Weitz

Weitz Commercial 

Scott@WeitzCommercial.com

T: 206-306-4034

Washington Unit Lot Subdivision vs. Condominium Overview

Single-family lots in Washington have had their value and potential explode in the last few years. Recent legislative changes (SB 5258 and 5559) have transformed the opportunity that comes with owning a suburban lot. The days of a single home being the highest and best use for many parcels are over.

This video with leading land use attorney Terry Wilson provides a crucial breakdown of the Unit Lot Subdivision (ULS) mechanism. It is a powerful tool that makes turning a single lot into a high-density, multi-unit investment. For decades, traditional subdivision was the only way to divide a property, but it was restrictive, requiring each new lot to meet minimum size requirements (e.g., 5,000 sq. ft.)

ULS flips the script by allowing you to build first, then divide:

1. Develop the Parent Parcel: You submit one building plan for the entire lot, which can now include multiple units (duplex, triplex, quadplex, or cottage housing), regardless of the old minimum lot size.

2. Create Ownership Lines: The ULS process then sits on top of that building plan, creating individual Unit Lots for ownership purposes only. These "lots" do not need to meet the old minimum lot size or setback rules, allowing you to sell each unit separately with its own tax parcel.

Unit Lot Subdivision vs. Condomization

Feature	Unit Lot Subdivision (USL)	Condominium
Process	Municipal review (City/County)	Private Process (Attorney)
Speed	Can be lengthy (6 months to a year)	Generally much quicker (1 to 2 months)
Ownership	Creates “unit lots”	Creates “condominium units”
Key Similarity	Both are based on the building plan of the original parent parcel

The Bottom Line for Clients: While ULS may be perceived as more "legitimate" by some buyers because of its municipal review, the condominium route is often the fastest and most efficient way. It quickly turns your finished construction project into sellable, separate units, reducing carrying costs and time to market.

This allows to maximize density and get the highest and best use out of your property. It also creates larger units unlike ADUs providing a more interesting opportunity for many buyers.

Our Take:

The zoning changes in the past few years in WA State are unprecedented on many levels in an effort to dramatically increase the amount of housing availability and assist with the affordability issues that have plagued the State in recent years.

These changes come with pros and cons, but one thing is for certain, the landscape has changed and those that are aware of how to maximize their own property (or others) have an opportunity that we've never seen.

For more information on investing in Snohomish County Real Estate, consider talking to an Everett based Commercial Real Estate Brokerage.

Our Office:

Weitz Commercial 
2716 Colby Ave
Everett, WA 98258 
Scott@Weitzcommercial.com
Nathan@Weitzcommercial.com
T: (206) 306-4034

National Apartment data shows warning signs

National apartment rents dropped again in November, marking yet another month of decline amid swelling vacancy rates.

According to the latest data, the median rent nationwide fell by 1.0% in November — the fourth straight monthly decrease.

At the same time, vacancies have surged to record highs of 7.2%, signaling a market shift from landlord-favoring to renter-favoring dynamics. Rental Housing Journal

What’s Driving the Decline?

• The steady drop in rents is largely a reaction to oversupply — many more units are available than there are tenants seeking them.

• This oversupply is translating into more aggressive rent concessions and downward pressure on pricing, as landlords compete to fill their units.

• For renters, this means greater negotiating power and the potential for deals not seen in several years.

Weitz Take: 

As rents fall and vacancies rise nationally, similar pressure may emerge in suburban and regional markets — including those in and around Snohomish County. For landlords and investors this could mean longer vacancy periods and downward rent adjustments. For renters (especially those relocating or upgrading), it could be a good time to find favorable lease terms or negotiate lower rates.

For real-estate professionals and property investors —  this trend may signal caution. It might be time to reassess rental-value assumptions, pro forma cash flows, or underwriting criteria for new acquisitions or developments.

I have to say - while Real Estate is certainly 'local' and I'm certainly not following each city / area closely, there are major reasons to be concerned of the current state of the real estate economy. This isn't a political statement and frankly, I wish it wasn't the case, but even as someone who has predicted this would be coming for months.....I didn't see the AI boom and underlying job losses that would accompany it (the government still hasn't released the October Jobs report - which simply can't be a good thing).... Every company I know is getting lean, and delinquencies from credit cards to auto loans to home foreclosures are all starting to rise significantly. While I really like certain geographical areas, certain value add opportunities or zoning situations, there is very little to be optimistic about with recent real estate news. From commercial to residential to multi-family, there simply aren't many bright spots. Even as someone who predicted this (and still feel often times alone in this opinion as of today), the data is simply so obvious that a negative cycle is beginning in my eyes.....I believe we are entering a major correction and I would plan accordingly as investor. If you are significantly leveraged, or own many properties, I would diversify as best you can (ie. Move to cash or even other hard assets/ currencies). While I do see some opportunities out there still, I simply can't suggest the overall asset class of real estate until the underlying fundamentals start to look better....hopefully, I'd dead wrong, but I'll always give my honest opinion and try to back it up with updates and data from local and national sources...stay tuned...I think we are in for an interesting ride. 

Chapter V Bankruptcy: What is it?

 I recently came across a new concept that took me a little off guard - a new Chapter V bankruptcy. When I first starting practicing law, I focused on distressed real estate which naturally led to a lot of bankruptcy discussions and a fair amount of Ch. 7 and Ch. 13 filings. Admittedly, I hated the process to be honest as it was frankly depressing and many clients were incredibly either down on their luck or disorganized (or both). That said, I learned a lot and always felt like I had a fairly good handle on the Bankruptcy code this was a bit surprising. With that said, I thought it was interesting an worthy of a blog post for those that deal in the business, debt and real estate world. 

And no...don't call me to file them (lol), but happy to give you some referrals if needed. 

Scott Weitz

_________________________

A Chapter V bankruptcy usually refers to Subchapter V of Chapter 11 of the U.S. Bankruptcy Code — a streamlined reorganization process designed specifically for small businesses.

Here’s a clear breakdown of the basics:

What is Subchapter V (Chapter V) Bankruptcy?

Subchapter V is a special subsection of Chapter 11 that Congress added in 2019 under the Small Business Reorganization Act (SBRA).
It is intended to make Chapter 11 faster, cheaper, and easier for small businesses to reorganize rather than liquidate.

Who Can File?

A “small business debtor” with non-contingent debt of roughly $7.5 million or less (this limit has been extended periodically by Congress).
Both individuals and companies can qualify if the debt is primarily business-related. I believe the amount has or will be reduced to $3 Million.

Key Features

1. Faster process
Subchapter V cases move quickly — typically confirmed in 90 days unless the court extends.

2. No creditor committee
This avoids substantial fees and complexity.

3. No competing plans
Only the debtor may file a reorganization plan. Creditors cannot propose their own.

4. No absolute priority rule
Owners can often keep their business without having to fully pay unsecured creditors, which is not allowed in traditional Chapter 11.

5. Subchapter V trustee
A trustee is appointed but acts more like an overseer/mediator, not someone who takes over the business.

6. Reduced administrative costs
Filing fees, reporting duties, and attorney requirements are lighter than in full Chapter 11.

Why Businesses Use It

Subchapter V is popular because it allows small businesses to:

• restructure debt
• renegotiate leases
• reduce or stretch repayment obligations
• keep operating
• avoid liquidation under Chapter 7

It’s essentially Chapter 11 “lite”, tailored to small-business survival.

For more information on distressed real estate investments or procedures, my email is Scott@WeitzCommercial.com. 

C: 206.306.4034 - please text first