For this month’s market watch we are seeing home prices continue to climb as well as sales of existing homes according to a recent report by the National Association of Realtors (NAR), even in the traditionally quieter month of January.
A Glimpse of Hope in Existing Home Sales
Interestingly, the market is witnessing a slight resurgence in the sales of existing homes. These are properties that have been previously occupied, as opposed to brand-new constructions. This increase is attributed to more listings becoming available. According to the NAR’s chief economist, Lawrence Yun, while sales figures are still lower compared to a few years back, the rise in January indicates a balance beginning to form between supply and demand, thanks to modest increases in listings and homebuyers capitalizing on currently lower mortgage rates. The trajectory of the housing market in the coming months is expected to be significantly influenced by the direction of these mortgage rates.
Trends in Existing-Home Sales
The statistics for existing-home sales, encompassing all completed transactions of non-new-construction homes, showed a national increase of 3.1% month-over-month in January 2024, reaching an annual pace of 4.0 million homes. Despite this uptick, the figure represents a 1.7% decrease year-over-year.Regionally, the West saw a 4.3% monthly increase, while the South experienced a 4.0% rise. The Northeast remained unchanged monthly but saw a 5.9% annual decrease, and the Midwest increased by 2.2% monthly, with a 3.1% annual decline.
Home Prices: Continuing to Climb
The median sale price for existing homes nationally was $379,100 in January, marking a 5.1% increase from last year and the highest price for January on record. This trend reflects a persistent rise in home prices, with the median reaching its peak at $413,800 in June 2022. This increase has been a part of a remarkable run in the U.S. housing market, with a record streak of year-over-year median sale price increases.
All four major U.S. regions experienced annual price increases in January, with the West leading at $572,100, up 6.3% from a year ago.
The Challenge of Low Housing Inventory
The total housing inventory at the end of January was 1.01 million units, slightly up from December but still indicative of a market short of the five to six months’ supply needed for a balanced market. This limited inventory is partly due to the reluctance of homeowners to sell, especially those who secured mortgages at lower rates in the past.
Key Takeaways for Homebuyers and Sellers
For prospective homebuyers and sellers, these trends offer both challenges and opportunities. Buyers face high prices and mortgage rates, yet there’s a growing inventory of existing homes. Sellers, on the other hand, are in a strong position due to high demand and limited supply, but must navigate the implications of current mortgage rates. Of course if you want to review options schedule a free consultation on our website.

Buying a home is a big milestone, but with it comes the responsibility of choosing the right homeowners insurance. This key step in the homebuying process protects you from financial loss in the event your most expensive investment is damaged or destroyed. As a new homebuyer, understanding the nuances of homeowners insurance is crucial for safeguarding your property and peace of mind.

The Importance of Adequate Coverage

On average, homeowners spend about $1,687 annually for insurance on a property valued at $250,000. However, standard policies may not cover all risks. It’s important to explore policy endorsements or add-ons for more comprehensive coverage, especially for specific risks like flooding or earthquakes. If you’re in the process of buying a new home, need an endorsement your current carrier doesn’t offer, or are facing increased rates at renewal, it’s time to shop for new insurance.

How to Shop for Home Insurance

Purchasing homeowners insurance can be more straightforward than you think. The process typically involves determining what you need to insure, researching insurance companies, exploring coverage add-ons, comparing quotes, and finally buying the policy. When evaluating what to insure, consider not only your home’s structure but also personal property and detached structures like garages or sheds. Research should focus on finding a company that aligns with your needs, whether that’s through digital tools, customer service options, or specific coverage offerings.

Evaluating Your Coverage Needs

When you take stock of your belongings and your home’s features, like upgraded appliances or hardwood floors, you’ll get a sense of the personal property coverage required. High-value items like jewelry or antiques often need additional coverage since standard policies have limits. Similarly, coverage for other structures on your property, typically a percentage of your dwelling coverage, should be assessed based on the replacement cost of structures like pools, sheds, or fences.

Comparing and Choosing the Right Policy

After narrowing down your choices, compare quotes to find the best rate. The cost of similar coverage can vary significantly among providers due to different discounts and personal rating factors. When you’re ready to buy, review the key coverage details of your policy to ensure it meets your needs. Standard policies typically include coverage for the dwelling, other structures, personal property, loss of use, liability, and medical payments. Be sure to understand each aspect and adjust as necessary.

Timing Your Insurance Shopping

You can shop for home insurance at any time, but certain moments, like moving to a new state, experiencing a rate increase, or needing a specific endorsement, can be particularly opportune. If you’re a new homebuyer, start early to find the best policy and price. Remember, if you’re planning to switch insurers, it’s advisable to secure the new policy before canceling the old one to avoid any coverage gaps.

Navigating the world of homeowners insurance as a new homebuyer can be daunting, but it’s a vital step in protecting your investment. By understanding your coverage needs, comparing options, and choosing the right policy, you can ensure that your new home and belongings are adequately protected.