Residential Real Estate News
U.S. Home Sales Uptick in July, First Time in 5 Months
According to recent data from the National Association of Realtors, existing-home sales saw an improvement in July 2024, halting a four-month streak of declines. Sales increased in three of the four major U.S. regions, with the Midwest holding steady. On a year-over-year basis, sales rose in the Northeast and West, but fell in the Midwest and South.
Total existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, rose by 1.3% from June to a seasonally adjusted annual rate of 3.95 million in July. However, compared to the previous year, sales dropped by 2.5% from 4.05 million in July 2023.
"Despite the modest gain, home sales are still sluggish," said NAR Chief Economist Lawrence Yun. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."
The total housing inventory at the end of July stood at 1.33 million units, marking a 0.8% increase from June and a 19.8% rise from a year ago (1.11 million). The unsold inventory represents a 4.0-month supply at the current sales pace, a slight decrease from 4.1 months in June but an increase from 3.3 months in July 2023.
The median price for existing homes across all housing types in July was $422,600, reflecting a 4.2% increase from the previous year ($405,600). Price increases were noted across all four U.S. regions.
Realtors Confidence Index
The monthly Realtors Confidence Index indicated that properties typically stayed on the market for 24 days in July, up from 22 days in June and 20 days in July 2023.
First-time buyers accounted for 29% of sales in July, consistent with June but slightly lower than the 30% in July 2023. The NAR's 2023 Profile of Home Buyers and Sellers, released in November 2023, revealed that the annual share of first-time buyers was 32%.
All-cash transactions made up 27% of sales in July, down from 28% in June but up from 26% a year earlier. Individual investors or second-home buyers, who are often involved in cash transactions, purchased 13% of homes in July, down from 16% in both June 2024 and July 2023.
Distressed sales, including foreclosures and short sales, accounted for 1% of transactions in July, remaining virtually unchanged from both the previous month and the prior year.
Mortgage Rates
Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.49% as of August 15, a slight increase from 6.47% the previous week but a decrease from 7.09% a year ago.
Single-family and Condo/Co-op Sales
Single-family home sales increased by 1.4% to a seasonally adjusted annual rate of 3.57 million in July, which is down 1.4% from the previous year. The median price for existing single-family homes was $428,500 in July, up 4.2% from July 2023.
"The median home price of condominiums is cheaper, yet the condominium market is underperforming compared to the single-family market," Yun added. "Rising maintenance and insurance costs have lessened the appeal for condominiums."
Sales of existing condominiums and co-ops in July remained steady at a seasonally adjusted annual rate of 380,000 units, but this represents an 11.6% decrease from a year earlier (430,000 units). The median price for existing condos was $367,500 in July, up 2.7% from the previous year ($357,900).
Regional Breakdown
- Northeast: Existing-home sales in July rose by 4.3% from June to an annual rate of 490,000, up 2.1% from July 2023. The median price was $505,100, an 8.3% increase from last year.
- Midwest: Sales remained unchanged in July at an annual rate of 920,000, a 5.2% decline from the previous year. The median price was $321,300, up 4.5% from July 2023.
- South: Sales increased by 1.1% from June to an annual rate of 1.79 million in July, down 3.8% from a year earlier. The median price was $372,500, a 2.3% rise from last year.
- West: Existing-home sales rose by 1.4% in July to an annual rate of 750,000, also a 1.4% increase from a year ago. The median price was $629,500, up 3.4% from July 2023.
