Residential Real Estate News
Home Sales in America Downtick Further in August
In August 2024, existing-home sales dropped, according to the National Association of Realtors (NAR) latest data. Three out of four major U.S. regions experienced declines, while the Midwest remained unchanged. Compared to the previous year, sales fell in three regions but held steady in the Northeast.
Total existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, decreased by 2.5% from July 2024, reaching a seasonally adjusted annual rate of 3.86 million. This represents a 4.2% year-over-year drop from 4.03 million sales in August 2023.
"Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months," said NAR Chief Economist Lawrence Yun. "The home-buying process, from the initial search to getting the house keys, typically takes several months."
At the end of August, total housing inventory was 1.35 million units, up 0.7% from July and 22.7% from August 2023's 1.1 million units. The unsold inventory now stands at a 4.2-month supply at the current sales rate, an increase from 4.1 months in July and 3.3 months in August 2023.
"The rise in inventory - and, more technically, the accompanying months' supply - implies home buyers are in a much-improved position to find the right home and at more favorable prices," Yun added. "However, in areas where supply remains limited, like many markets in the Northeast, sellers still appear to hold the upper hand."
The median price for existing homes across all housing types in August was $416,700, marking a 3.1% increase from August 2023's $404,200. All four U.S. regions saw price increases.
Realtors Confidence Index
According to the Realtors Confidence Index, properties typically stayed on the market for 26 days in August, compared to 24 days in July and 20 days in August 2023.
First-time buyers accounted for 26% of sales in August, tying the record low last seen in November 2021. This figure was down from 29% in both July 2024 and August 2023. NAR's 2023 Profile of Home Buyers and Sellers, released in November, reported that first-time buyers made up 32% of the total for the year.
All-cash transactions represented 26% of August sales, down from 27% in both July and the previous year. Individual investors and second-home buyers, who typically make up many cash sales, purchased 19% of homes in August, a rise from 13% in July but a drop from 16% in August 2023. Distressed sales (foreclosures and short sales) accounted for 1% of transactions, unchanged from both last month and the previous year.
Mortgage Rates
Freddie Mac reported that the average 30-year fixed mortgage rate was 6.2% as of September 12, down from 6.35% a week earlier and 7.18% a year ago.
Single-family and Condo/Co-op Sales
Single-family home sales fell by 2.8% in August, reaching a seasonally adjusted annual rate of 3.48 million, a 3.3% decrease compared to last year. The median price for an existing single-family home in August was $422,100, up 2.9% year-over-year.
Sales of existing condominiums and co-ops remained steady from July, at an annual rate of 380,000 units, but were down 11.6% compared to last year's 430,000 units. The median existing condo price was $366,500 in August, reflecting a 3.5% increase from $354,200 the previous year.
Regional Breakdown
- Northeast: Sales decreased 2.0% from July, settling at an annual rate of 480,000, the same as in August 2023. The median price rose 7.7% to $503,200.
- Midwest: Sales were flat in August at an annual rate of 920,000, down 5.2% from the previous year. The median price rose 3.8% to $315,400.
- South: Sales dropped 3.9% from July to an annual rate of 1.73 million, marking a 6.0% year-over-year decline. The median price rose 1.6% to $367,000.
- West: Sales fell 2.7% in August, with an annual rate of 730,000, down 1.4% from the previous year. The median price increased by 2.2% to $622,500.
