December 2023 U.S. Housing Market Update: Inventory Rising, Prices Holding Steady

December 2023 brought fresh activity to the U.S. housing market. According to the monthly report from a leading real-estate data provider, the number of homes actively for sale grew by 4.9 percent compared to December 2022. 

New listings increased by 9.1 percent year-over-year, ending a long period of shrinking inventory. At the same time, the total number of unsold homes, including those under contract, rose by 3.6 percent.

On the pricing front, the median listing price showed only modest growth of 1.2 percent over the previous year. Homes spent on average 61 days on the market, which was 4 days less than in December 2022 and significantly shorter than pre-pandemic norms. 

These developments suggest a market in the early stages of stabilization. Inventory growth gives prospective homebuyers and investors more choice and negotiating power. For those seeking long-term stability or rental yield, the balance between supply increase and steady demand may present attractive entry points.

For investors, especially in real estate, this period offers a window of opportunity. With broader selection and relatively stable prices, it may be a good time to consider acquiring assets, particularly in metro areas showing inventory growth.

Looking ahead, declining mortgage rates (as signaled in late 2023) could further stimulate new listings and buyer activity. Those who act timely may benefit from favorable conditions before prices adjust.