Market Update for Week Ending October 20, 2024
Insights from Michael Severns
Thank you for your patience! My avid readers and followers, if you have been paying attention to my social media accounts you know that @HungryRealtor has moved on to a new brokerage (KW Main Line) and has started a real estate team, Severns Group. This was quite an undertaking and we are still setting up. However, I needed to touch base with you all because the market is moving and there has been a lot of news since my last article.
Weekly Snapshot for the week ending October 20, 2024:
Showings spiked last week. There were 79,528 showings in the Bright MLS service area for the week ending October 20, marking a 12.2% increase compared to the same week last year and a 4.1% rise from the previous week. Showings had been trailing behind 2023 for most of the year, but after several weeks of gradual increases since early September, more home shoppers are entering the market with renewed confidence this October.
Price pressure easing for the year. Historically, prices have a seasonal cool off period in the fall months. This week, the median list price in the Bright MLS Service area was $400,000, a 4.7% decrease from last week. Prices may be coming down seasonally, but affordability is still a challenge for buyers as the median list price was still 1.3% higher than the same week last year
New listings soar over 2023. There were 5,499 new listings this week, reflecting a 9.8% surge compared to the same week in 2023. Typically, as the market cools in the fall, new listings decline week-over-week, but this week stands out as an exception. Seller confidence has been growing in the latter half of the year, contributing to a healthier supply of homes. Despite the welcome increase in new listings, by historical standards, supply remains significantly lower compared to more typical years like 2019.
More Showings This Week
This past week, we saw a big increase in buyer activity. There were 79,528 showings across the Bright MLS area, which is 12.2% more than the same week last year and 4.1% more than the previous week. This increase in showings has been happening since early September, which means more buyers are feeling confident about looking for homes. The rise in showings is a good sign that buyers are still very interested in finding a home, even as the market moves into the cooler fall season.
Buyers seem to be more hopeful about finding a home, even with the challenges of high prices and interest rates. This renewed confidence is really important because it could keep the market busy as we head toward the end of the year.
New Listings Are Up, Which Is Unusual for Fall
Another big change this week was the increase in new listings. Usually, as we move into fall, new listings tend to drop. But this week, we had 5,499 new listings, which is 9.8% more than the same time last year. This increase is because sellers are feeling more confident, which has helped bring more homes to the market.
Even though the overall number of homes for sale is still lower compared to before the pandemic, the new listings are a great help for buyers who have been facing lots of competition and fewer options. Sellers seem to be seeing value in listing their homes now, which is different from the usual fall trend. If this continues, it could help balance the market by giving buyers more options and possibly making prices more reasonable.
Price Trends and Affordability Issues
The median list price for the week was $400,000, which is 4.7% lower than the previous week. Even though prices are cooling off as expected in the fall, affordability is still a problem for many buyers. The median list price is still 1.3% higher than it was at this time last year. The high prices, along with rising interest rates, make it hard for some people to afford a home.
The slight drop in prices might help a little, but it’s still tough for many buyers because the cost of borrowing money has gone up. Higher interest rates mean higher monthly payments, which makes it harder for buyers to manage. Even with the recent price drop, affordability will continue to be a big challenge. On the other hand, sellers can still benefit from the fact that prices are higher than last year, which could make this a good time to sell.
More Active Listings and Contract Activity
Active listings in the Bright MLS area grew to 37,634, which is a 16.1% increase compared to last year. This is great news because it gives buyers more options and makes the market more balanced than it was earlier this year. However, the median time it takes for a home to go under contract has gone up by two days, now at 23 days. This means that homes are taking a bit longer to sell, which could be because buyers have more choices or are being more careful due to rising interest rates.
With more homes available, buyers might not feel the need to rush, and they can take their time to make the best decision. New purchase contracts also went up compared to last year, with 5,641 contracts signed—an 8.2% increase from the same week in 2023. But there was a 3.4% decrease compared to the previous week, which suggests that things are slowing down a bit as we move further into fall.
This slight slowdown is expected, as activity usually drops during this time of year. Even so, the year-over-year increase in contracts shows that there is still a lot of interest from buyers, even with the challenges of high prices and financing costs.
Philadelphia Metro Market Highlights
The Philadelphia Metro area saw a lot of activity this past week. Showings were up by 6.7% compared to last year, with a total of 26,079 showings. New listings in the area also grew significantly, with 1,672 new homes added to the market—an increase of 9.6% compared to last year. This is a positive trend for buyers who have been waiting for more options.
The median list price in Philadelphia was $360,000, which is 2.9% higher than the same week last year, but 4.0% lower than the previous week. The median time to contract for homes in the Philadelphia Metro area was 20 days, which is slightly longer than last year. Active listings grew to 11,543, showing a 10.9% increase compared to last year. The increase in both listings and showings suggests that the market is staying active, with both buyers and sellers participating at higher rates than last year.
New Castle County, DE Market Highlights
In New Castle County, Delaware, the market also showed some interesting trends. Showings were up by 8.5% compared to last year, indicating strong buyer interest in the area. There were 388 new listings added to the market this week, which is an increase of 7.5% compared to last year. This rise in new listings is providing more choices for buyers who may have been struggling to find the right home.
The median list price for homes in New Castle County was $345,000, up 3.2% from the same time last year, but down 3.8% from the previous week. Homes are taking about 21 days to go under contract, which is a slight increase from last year, suggesting that buyers are taking a bit more time to make decisions. Active listings in the county grew to 3,476, which is a 9.4% increase compared to last year. This increase in inventory is helping to create a more balanced market for buyers and sellers.
Looking Ahead
As we move through the final months of the year, these trends show that the market is still strong, with more homes for sale and steady buyer interest, even though affordability is still a challenge. The increase in showings and new listings suggests that both buyers and sellers are staying active and positive, even during a time when things usually slow down.
For buyers, more homes on the market mean more chances to find the right home, but it’s still important to keep in mind how rising interest rates affect buying power. For sellers, the strong demand and higher price levels make it a good time to sell, especially if homes are priced well. If you’re thinking about buying or selling, understanding these trends can help you make better choices.
It’s always helpful to work with an experienced professional who can guide you through these market changes and help you make the most of the current conditions.
Do you have questions about what these trends mean for you? Feel free to reach out—I'm here to help you understand the real estate market. Whether you’re looking to buy your first home, thinking about selling, or just want to stay informed, I'm here for you. Together, we can make a plan that fits your goals and helps you take advantage of today’s opportunities.
