Residential Real Estate News
U.S. Home Sales Hit Slowest Pace Since 2010 Post Financial Crash Era
High rates, high price inflation and low consumer sentiment continues hobble the U.S. housing market
According to the latest data from the National Association of Realtors (NAR), U.S. existing home sales continued to decline in September 2024. Sales dropped in three of the four major U.S. regions, while the West saw a slight rebound. Compared to the same month last year, sales decreased in three regions but increased in the West.
Total existing-home sales -- which include single-family homes, townhomes, condominiums, and co-ops -- fell by 1.0% from August to a seasonally adjusted annual rate of 3.84 million in September. On a year-over-year basis, sales were down 3.5%, declining from 3.98 million in September 2023.
NAR Chief Economist Lawrence Yun noted that despite sales being stagnant around 4 million units for the past year, some positive factors that typically boost home sales are emerging. These include more inventory options, lower mortgage rates than a year ago, and continued job growth. However, Yun suggested some buyers might be hesitant to make large purchases like homes ahead of the upcoming election.
The total housing inventory at the end of September 2024 reached 1.39 million units, a 1.5% increase from August and a 23% rise from the previous year's 1.13 million units. Unsold inventory represents a 4.3-month supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
Yun highlighted that while more inventory is a positive development for buyers, the number of distressed properties remains low due to the very low mortgage delinquency rate. In September, distressed property sales made up just 2% of all transactions.
The median price for existing homes in September was $404,500, a 3.0% increase from $392,700 in the previous year. All four regions saw price gains. Yun added that this moderation in price growth is good news for buyers, as wage growth is now outpacing home price appreciation, which should help improve housing affordability.
Regional Housing Breakdown
- Northeast: Sales fell by 4.2% from August to a rate of 460,000 units, a 6.1% decline from September 2023. The median price rose 6.0% to $467,100.
- Midwest: Sales dropped 2.2% to 900,000 units, down 5.3% year-over-year. The median price was $306,600, up 5.0%.
- South: Sales decreased 1.7% from August to a rate of 1.72 million units, a 5.5% decline from the prior year. The median price increased 0.8% to $359,700.
- West: Sales rose by 4.1% to 760,000 units, a 5.6% increase from a year ago. The median price grew by 1.7% to $616,400.
Realtors Confidence Index
According to the monthly Realtors Confidence Index, homes stayed on the market for an average of 28 days in September, up from 26 days in August and 21 days in September 2023. First-time buyers accounted for 26% of sales in September, matching the all-time low recorded in August 2024 and November 2021, and down from 27% in September 2023.
All-cash sales represented 30% of transactions in September, up from 26% in August and 29% in September 2023. Investors or second-home buyers, many of whom pay cash, purchased 16% of homes in September, down from 19% in August and 18% in September 2023. Distressed sales--foreclosures and short sales--remained steady at 2% of sales, unchanged from the previous month and year.
U.S. Mortgage Rates
As of October 17, Freddie Mac reported the average 30-year fixed-rate mortgage at 6.44%, an increase from 6.32% the previous week but lower than the 7.63% rate a year ago.
Single-Family and Condo/Co-op Sales
Single-family home sales edged down by 0.6% in September to a seasonally adjusted annual rate of 3.47 million, a 2.3% decrease from the previous year. The median price for single-family homes was $409,000 in September, up 2.9% from September 2023.
Sales of existing condominiums and co-ops dropped by 5.1% in September to an annual rate of 370,000 units, marking a 14% decrease from 430,000 units a year ago. The median price for existing condos was $361,600 in September, a 2.2% increase from last year's $353,900.
