Compass National Insights report

THE COMPASS NATIONAL INSIGHTS REPORT: OCT 2023

REAL TIME DATA ON REAL ESTATE AND ECONOMIC MARKET CONDITIONS THROUGHOUT THE UNITED STATES

The September 2023 median price declined slightly from August, but was up 2.5% year-over-year. Over the longer term, homeownership has typically been a great builder of household wealth. In markets in which they are common, condos & co-ops are usually a more affordable alternative to houses. Certainly one of the most important factors in housing markets since 2022 began has been the increase in interest rates, which has continued in recent months. Using 12-month-rolling-average data, a broad illustration of the huge decline in the number of new listings coming on market over the past 6 years. The decline in new listings amid rebounding buyer demand in 2023 has deeply affected supply. Price reductions have been climbing since spring, a common seasonal trend, especially as we get closer to the mid-winter holiday slowdown. Economic conditions and low inventory have dramatically impacted monthly and 12-month sales volumes. As a percentage of total sales, all-cash purchases hit their highest point in 9 years, tying the percentage hit earlier this year. Inflation, the Fed's greatest concern, has plunged from its mid-2022 high, but has not seen the desired level of improvement in recent months. Employment has remained very strong - in fact too strong for many economists and investors watching the Fed and inflation numbers. According to RealTrends, Compass sells more residential real estate, in dollar-volume sales, than any other brokerage in the nation.