Inventory continues to climb, giving buyers more options (December 2024 Market Report)
Buyers should expect less competition for homes than in recent years as housing inventory continues to trend closer to long-term norms from before the pandemic. The number of homes on the market nationwide in December was just under 1 million — more than in any December since 2019.
The available pool of existing homes is now 25% below 2018–2019 averages for this time of year, far from the 37% shortfall of January 2024 or the record deficit of 51% seen in February 2022. Rising inventory also points to softer price growth ahead.
Now, 10 of the 50 largest major metros have more homes on the market than at this time of year before the pandemic. Those metros are concentrated in Florida, Texas and the South, where builders have been better able to keep up with demand, though Denver is in the mix, too.
With any luck, the recent momentum of sellers returning to the housing market — some likely doubting that mortgage rates will drop anytime soon to improve their own buying situation — will continue to recover in the new year. That should give buyers a bit of breathing room in terms of competition and negotiating power.
Zillow’s Market Heat Index shows the housing market is fairly balanced between buyers and sellers. It’s the first time the index has been in neutral territory in December since 2019.
December 2024 Market Report
Home values
- The typical U.S. home value is $358,461.
- The typical monthly mortgage payment, assuming 20% down, is $1,844.
- Home values climbed month over month in just one of the 50 largest metro areas in December – Louisville, rising 0.2%. Holding steady were Salt Lake City (0%), San Jose (0%), Washington (0%), and Oklahoma City (0%).
- Home values fell, on a monthly basis, in 45 major metro areas. The largest monthly drops were in Tampa (-0.9%), Austin (-0.8%), New Orleans (-0.7%), Buffalo (-0.7%), and Atlanta (-0.7%).
- Home values are up from year-ago levels in 42 of the 50 largest metro areas. Annual price gains are highest in San Jose (7.9%), Providence (6.7%), Hartford (6.5%), Cleveland (6.4%), and New York (6.4%).
- Home values are down from year-ago levels in eight major metro areas. The largest drops were in Austin (-3.2%), Tampa (-2.5%), San Antonio (-1.8%), New Orleans (-1.4%), and Jacksonville (-0.9%).
- The typical mortgage payment nationwide is up 1.6% from last year and has increased by 109.7% since pre-pandemic.
Inventory and new listings
- New listings decreased by 30.9% month over month in December.
- New listings decreased by 0.4% this month compared to last year.
- New listings are -14.8% lower than pre-pandemic levels.
- Total inventory (the number of listings active at any time during the month) in December decreased by 10% from last month.
- The median age of inventory, the typical time since the initial list date for active for-sale listings, was 82 days.
- There were 16.8% more listings active in December compared to last year.
- Inventory levels are -25.1% lower than pre-pandemic levels for the month.
Price cuts and share sold above list
- 17.2% of listings in December had a price cut. That is down 4.6 percentage points (ppts) month over month.
- There are 1.7ppts more listings with a price cut compared to last year.
- 26.9% of homes sold above their list price last month. That is down 0.9ppts month over month.
- 2.4ppts fewer homes sold above their list price compared to last year.
Newly pending sales
- Newly pending listings decreased by 19.5% in December from the prior month.
- Newly pending listings increased by 0.4% from last year.
- Median days to pending, the typical time since initial list date for homes that went under contract in a month, is at 37 days in December, up nine days since last month.
- Median days to pending increased by 7 days from last year.
Market heat index
- Zillow’s market heat index shows the nation is currently a neutral market.
- The strongest sellers markets in the country are San Jose, San Francisco, Hartford, Buffalo, and Boston.
- The strongest buyers markets in the country are Miami, New Orleans, Jacksonville, Indianapolis, and Pittsburgh.
Rents
- Asking rents decreased by 0.2% month over month in December. The pre-pandemic average for this time of year is to hold steady.
- Rents are now up 3.4% from last year.
- Rents fell, on a monthly basis, in 32 major metro areas. The largest monthly drops are in Denver (-1.3%), Salt Lake City (-0.6%), San Jose (-0.6%), Portland (-0.6%), and Austin (-0.5%).
- Rents are up from year-ago levels in 47 of the 50 largest metro areas. Annual rent increases are highest in Hartford (7.9%), Cleveland (7%), Richmond (6.5%), Providence (6.2%), and Chicago (5.8%).
