OCT 2023: Compass National Real Estate Insights

The insights report attached helps to share some context around the trends we are seeing within the real estate market on a national level. Brought to you by the Halupka Team at Compass.

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Impacted by both low inventory and economic factors, the number of U.S. existing-home sales in September 2023 dropped 13.5% from August and almost 19% from September 2022. The median house sales price increased 2.5% year over year, while the median condo/co-op price jumped almost 7%. Presumably affected by rising interest rates, all-cash purchases hit their highest share of total sales, 29%, in 9 years. Approximately 69% of sales accepted offers in less than 30 days; 26% sold above list price; and the average number of offers received on sold homes was 2.6. Data from the National Association of Realtors® 10/19/23.

Economic and political challenges - and even environmental factors in some regions - have continued to impact housing markets in recent months. Interest rates rose along with national and international uncertainties; financial markets are well below mid-summer highs, and consumer confidence has ticked down. The supply of listings for sale, though slowly rising, remains very low by historical norms, dramatically affecting market dynamics. Total sales over the past 12 months were the lowest since the 2008-2011 housing market recession. However, as mentioned above, on average, the homes that did sell, sold quickly with multiple offers, and median home sales prices rebounded in 2023 and are currently higher on a year-over-year basis.

In the great majority of U.S. markets, the big, mid-winter holiday slowdown begins in mid-late November. Though buying and selling occur in every month of the year, listing and sales activity usually drop to their lowest levels of the year until activity picks up again in the first quarter.

This report will review broad national trends in home prices, supply and demand, and selected economic indicators. A national report is a huge generalization of trends across an enormous range of regional submarkets, whose values and market dynamics widely vary. National data on October sales should become available in the third week of November.

Data from sources deemed reliable, but may contain errors and subject to revision. Some of the latest data is labeled "preliminary" by its provider. All numbers should be considered approximate, good-faith estimates.

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