From Fortune:

Low housing inventory and high mortgage rates have reduced U.S. housing market activity. Zillow’s December report shows the market is more active today than before the pandemic. Inventory levels are increasing slowly but remain low. Home sales are faster and mortgage rates are higher, but the market is more active.

Zillow states that homes are selling 50% faster than pre-pandemic, with zero to 30 days on the market. Mortgage rates have cooled competition but won’t eliminate it. Pending buyers are returning due to lower rates, says Orphe Divounguy, Zillow senior economist.

Buyers face stiff competition and fewer housing transactions due to low inventory levels. Only 16% of listings in December 2023 had price cuts, and 30% of listings sold above asking price. Limited supply leads to buyers making concessions and bidding on less desirable properties.

Both home prices and mortgage rates are increasing. Monthly mortgage payments rose 7.5% year over year and typical homes cost $344,000 with a $1,790 mortgage payment. The Federal Reserve’s slow interest rate hikes will loosen the market, causing an increase in homeowner sales. Now, more than one in five homeowners are considering selling.



Read more: 3 reasons why the 2024 housing market is more active than before the pandemic