Weekly Real Estate Monitor for Jan. 22-26

This week brings positive developments in the housing sector as mortgage interest rates remained below 7% for the sixth consecutive week, but there was an increase from last week, starting the week at 6.87% and at 6.90% today. The response from home buyers to the recent mortgage rate decreases has seen a year-over-year increase of 5% in December showings. Additionally, there is encouraging news on the mortgage application front, with a 3.7% rise from the previous week along with new home sales also experiencing growth.

Although 2023 presented challenges in the housing market, there are numerous reasons for optimism in 2024. Decreased mortgage interest rates are likely to motivate both buyers and sellers to reconsider their positions. Life events such as family changes, new job opportunities, and retirements continue to drive housing consumer needs, prompting the search for new locations and homes that align with their evolving lifestyles.

Empowering Trends in Single Women Home Buyers

Historically, legal hurdles for women obtaining mortgages without co-signers were overcome only in 1974. In 1981, 11% of home buyers were single women; today, that figure is at 19%. The recent rise is partly attributed to a decrease in married Americans, translating to 34% of one-person households in 2022.

Single women buyers stand out for purchasing homes close to friends and family, while men often cite family changes. Multigenerational living and caregiving responsibilities may contribute to women's preference for homeownership. Financially, women typically enter the market with a median income of $69,600 compared to single men at $83,800. Despite lower incomes, 45% of women make financial sacrifices, emphasizing their commitment to homeownership.

Interestingly, women's age as first-time buyers is slightly higher, at a median of 38, compared to men at 33. Women make more significant sacrifices, such as cutting spending and even taking on second jobs. Down payment sources reveal men often rely on savings, stocks, or loans, while women frequently use proceeds from selling their last home or receive gifts from friends or family.

Weekly Highlights:

New listings drop below the previous year's figures.

Despite a surge in new listings towards the close of 2023 and the beginning of 2024, the week ending January 21 witnessed a 10.2% decline from the previous year. Inclement weather due to passing tropical storms in December and January contributed to a temporary slowdown in market activity.

Showings are on hold due to adverse weather conditions.

In the week ending January 21, there was a substantial 27.5% decrease in showings compared to the corresponding period last year. The drop in showings, like other aspects of market activity, can be partially attributed to winter storms affecting the region.

List prices continue to rise unaffected.

The median list price increased by 5.3% compared to the previous year. If this trend persists, there is a possibility of reaching new all-time highs later in the year.