Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 22% annually in December, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
Find your lowest rate. Start hereActive listings make huge leap in December
In a promising sign for prospective borrowers, active home listings surged 22% annually in December, according to Realtor.com’s Housing Report.
A typical day during the month yielded 871,509 for-sale listings and marked the 14th straight month — and 28th of the past 34 — with year-over-year inventory growth. The listing count fell below November’s 953,452 while overshadowing December 2023’s 714,176. Though active listings are trending upwards, they still lag “normal” prepandemic levels.
“December is traditionally a slower time for the market, as people settle in for the holidays, and we expect to see a seasonal downturn each year. Compounding this, mortgage rates are hovering in the high 6s, following a strikingly different trend than at this time last year. Nevertheless, the number of homes for sale grew compared to last December,” said Danielle Hale, chief economist at Realtor.com.
“Further, growing activity in newly listed homes and a slower market pace could spell opportunity for winter buyers who want to get ahead of the busier spring season.”
Regionally, the South saw active listings grow most at a 26.7% annual rate. Then came the West at 23.7%, Midwest at 15.2% and Northeast at 6.9%.
Among the 50 largest U.S. housing markets, Miami led the way with a 45.4% year-over-year gain in active listing count. Jumps of 42.4% in Orlando, Fla., 41.9% in Denver, 41.5% in Las Vegas, and 41.2% in San Diego, rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in December:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Days on Market | Price– Reduced Share |
| Miami | 45.4% | $522,500 | -9.9% | 79 | 14.7% |
| Orlando, Fla. | 42.4% | $419,950 | -4.3% | 80 | 17.0% |
| Denver | 41.9% | $577,350 | -5.4% | 74 | 24.1% |
| Las Vegas | 41.5% | $468,450 | 1.9% | 63 | 15.5% |
| San Diego | 41.2% | $964,725 | -1.6% | 55 | 10.9% |
| Atlanta | 38.3% | $399,950 | -3.6% | 65 | 16.2% |
| Jacksonville, Fla. | 36.8% | $384,500 | -5.7% | 78 | 17.9% |
| Charlotte, N.C. | 33.6% | $422,450 | 5.6% | 63 | 16.0% |
| Phoenix | 32.8% | $499,995 | -5.1% | 66 | 21.2% |
| Riverside, Calif. | 32.8% | $597,000 | 3.1% | 66 | 11.1% |
| Dallas | 31.1% | $422,450 | -2.9% | 66 | 17.4% |
| Oklahoma City | 28.4% | $309,950 | -3.1% | 58 | 15.2% |
| Raleigh, N.C. | 27.0% | $444,498 | -0.4% | 70 | 11.6% |
| Tampa, Fla. | 27.0% | $395,000 | -6.0% | 72 | 19.6% |
| Los Angeles | 26.3% | $1,094,000 | -0.5% | 63 | 9.0% |
On the other end of the spectrum, San Jose, Calif., gained the least inventory, falling 1% from December 2023. After Silicon Valley, active listings rose 0.3% in New York, 1.1% in Boston, 1.4% in Rochester, N.Y., and 3.4% in Hartford, Conn.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Days on Market | Price– Reduced Share |
| San Jose, Calif. | -1.0% | $1,268,500 | -2.3% | 50 | 7.2% |
| New York | 0.3% | $749,000 | 2.0% | 73 | 4.6% |
| Boston | 1.1% | $801,383 | 0.2% | 60 | 8.9% |
| Rochester, N.Y. | 1.4% | $257,400 | 3.0% | 56 | 3.9% |
| Hartford, Conn. | 3.4% | $399,900 | 2.6% | 49 | 7.4% |
| Cleveland | 3.7% | $239,950 | 9.1% | 55 | 13.0% |
| Providence, R.I. | 4.3% | $524,950 | 5.0% | 49 | 16.6% |
| Milwaukee | 6.0% | $357,450 | 6.7% | 45 | 11.6% |
| Chicago | 6.4% | $347,450 | -0.7% | 51 | 10.2% |
| Philadelphia | 6.4% | $358,075 | 5.3% | 57 | 10.9% |
| Detroit | 8.0% | $249,900 | 6.2% | 50 | 11.8% |
| Minneapolis | 8.0% | $423,198 | 0.7% | 59 | 10.1% |
| St. Louis | 9.6% | $277,450 | 0.9% | 58 | 12.9% |
| Richmond, Va. | 10.1% | $419,950 | -2.3% | 54 | 10.5% |
| Indianapolis | 12.1% | $309,900 | 1.6% | 60 | 16.9% |
Additionally, the median time listings spent on the market grew to 70 days, up from 62 days in November and 61 days the year prior. The share of listings with price reductions hit 12.9%, down monthly from 16.7% but up annually from 12.7%.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
