The housing market had a hot fall. Unseasonably warm weather and lower mortgage rates combined to keep the season active. But while favorable conditions kept the market buzzing into November, it slowed down significantly by the end of the month. For example, new listings fell 30 percent month-over-month in November. Price cuts also fell, after being offered on a near-record number of listings in October. Even affordability calmed, with mortgage payments as a share of median income down to its lowest level since August 2022. But what’s causing the market to slow down even as affordability conditions improve? Well, it could just be the housing market getting ready for winter. Things typically slow down near the end of the year and it appears this year may be no different. In fact, November’s decline in new listings and price cuts actually puts them both back in line with seasonal averages. But while seasonal trends can be expected, that also means there will likely be a growing number of interested buyers in spring when the season – and the market – begins to heat back up again. (source)
