2024 Brings Hope for a Brighter Housing Market

  • Existing-home sales fell 19% in 2023, the lowest level in nearly 30 years
  • Median home sale price reached a new high of $389,800
  • December sales dropped 1% to the lowest level since August 2010
  • Inventory of unsold homes decreased by 11.5% in December
  • Mortgage rates have decreased by more than one percentage point since October

Existing-home sales in 2023 experienced a significant decline of 19%, reaching the lowest level in almost 30 years. The median home sale price, however, continued to rise, reaching a new high of $389,800. December sales further worsened, dropping 1% to the lowest level since August 2010. On a positive note, the inventory of unsold homes decreased by 11.5% in December, indicating a potential shift in the market. Additionally, mortgage rates have significantly decreased by more than one percentage point since October, providing potential buyers with more favorable financing options. These factors suggest a brighter outlook for the housing market in 2024.

Public Companies: National Association of Realtors (), Freddie Mac ()
Private Companies:
Key People: Lawrence Yun (Chief Economist)

Factuality Level: 7
Justification: The article provides specific data from the National Association of Realtors to support its claims about the decline in existing-home sales and the increase in median home sale price. It also includes a quote from Lawrence Yun, the trade group’s chief economist, to provide additional perspective. However, the article does not provide any counterarguments or alternative viewpoints, which could potentially limit its overall factuality.

Noise Level: 3
Justification: The article provides relevant information about the decline in existing-home sales in 2023 and the impact of rising mortgage rates and tight supply. It also mentions the prediction of an industry economist for a brighter picture in 2024. However, the article lacks in-depth analysis, data, and actionable insights. It is relatively short and does not explore the consequences of these trends on home buyers or the housing market as a whole.

Financial Relevance: Yes
Financial Markets Impacted: Real estate market, mortgage rates

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of rising mortgage rates and tight supply of houses on existing-home sales. While the sales dropped in 2023, the economist predicts an improvement in 2024 due to lower mortgage rates and expected increase in inventory. There is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com