Nov 15 2024 5 mins 1
The US housing industry is currently experiencing a mix of trends, influenced by recent market movements, regulatory changes, and shifts in consumer behavior. Here's a current state analysis based on the latest data and statistics.
The housing market has seen a slight improvement in home sales, with total home sales rising 2.6% in July 2024 compared to the previous month, according to Freddie Mac's Economic, Housing and Mortgage Market Outlook[1]. However, pending home sales declined 5.5% month-over-month in July, indicating that affordability challenges continue to impact the market.
Home prices have continued to rise, albeit at a slower pace. The CoreLogic Home Price Index reported a 3.4% year-over-year increase in home prices in September 2024, with a slight 0.02% month-over-month increase[2]. The median home-sale price reached $404,500 in September 2024, the highest September median recorded by the National Association of Realtors[4].
Mortgage rates have been a significant factor in the housing market. After peaking earlier in the year, the average 30-year mortgage rate has come down to 6.88% as of late October 2024, according to Bankrate[4]. However, rates are still considered high, and further declines are needed to significantly boost home sales.
The supply of housing inventory remains tight, with a 4.3-month supply as of September 2024, which is below the 5 to 6 months needed for a balanced market[4]. New construction and existing home listings are slowly increasing, but a significant surge is needed to meet demand.
Consumer behavior has shifted, with homebuyers waiting for mortgage rates to fall further before entering the market. According to Selma Hepp, chief economist at CoreLogic, "Lower mortgage rates would help spur home sales activity, drive more sellers to trade their existing home, and help add much-needed inventory to the market"[2].
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, Lawrence Yun, chief economist at the National Association of Realtors, notes that "more supply is beginning to appear, and this could be an early indicator of more home sales later as consumers see more choices and home prices no longer perk up"[4].
In comparison to the previous reporting period, the housing market has shown signs of stabilization, with home prices continuing to rise but at a slower pace. However, the market remains sensitive to mortgage rate changes and inventory levels.
Key statistics and data from the past week include:
- Home prices increased 3.4% year-over-year in September 2024[2].
- The median home-sale price reached $404,500 in September 2024[4].
- The average 30-year mortgage rate was 6.88% as of late October 2024[4].
- The housing inventory supply was 4.3 months as of September 2024[4].
Overall, the US housing industry is navigating a complex landscape, influenced by mortgage rates, inventory levels, and consumer behavior. While there are signs of stabilization, further declines in mortgage rates and increases in inventory are needed to significantly boost home sales.
The housing market has seen a slight improvement in home sales, with total home sales rising 2.6% in July 2024 compared to the previous month, according to Freddie Mac's Economic, Housing and Mortgage Market Outlook[1]. However, pending home sales declined 5.5% month-over-month in July, indicating that affordability challenges continue to impact the market.
Home prices have continued to rise, albeit at a slower pace. The CoreLogic Home Price Index reported a 3.4% year-over-year increase in home prices in September 2024, with a slight 0.02% month-over-month increase[2]. The median home-sale price reached $404,500 in September 2024, the highest September median recorded by the National Association of Realtors[4].
Mortgage rates have been a significant factor in the housing market. After peaking earlier in the year, the average 30-year mortgage rate has come down to 6.88% as of late October 2024, according to Bankrate[4]. However, rates are still considered high, and further declines are needed to significantly boost home sales.
The supply of housing inventory remains tight, with a 4.3-month supply as of September 2024, which is below the 5 to 6 months needed for a balanced market[4]. New construction and existing home listings are slowly increasing, but a significant surge is needed to meet demand.
Consumer behavior has shifted, with homebuyers waiting for mortgage rates to fall further before entering the market. According to Selma Hepp, chief economist at CoreLogic, "Lower mortgage rates would help spur home sales activity, drive more sellers to trade their existing home, and help add much-needed inventory to the market"[2].
Industry leaders are responding to current challenges by focusing on affordability and inventory. For example, Lawrence Yun, chief economist at the National Association of Realtors, notes that "more supply is beginning to appear, and this could be an early indicator of more home sales later as consumers see more choices and home prices no longer perk up"[4].
In comparison to the previous reporting period, the housing market has shown signs of stabilization, with home prices continuing to rise but at a slower pace. However, the market remains sensitive to mortgage rate changes and inventory levels.
Key statistics and data from the past week include:
- Home prices increased 3.4% year-over-year in September 2024[2].
- The median home-sale price reached $404,500 in September 2024[4].
- The average 30-year mortgage rate was 6.88% as of late October 2024[4].
- The housing inventory supply was 4.3 months as of September 2024[4].
Overall, the US housing industry is navigating a complex landscape, influenced by mortgage rates, inventory levels, and consumer behavior. While there are signs of stabilization, further declines in mortgage rates and increases in inventory are needed to significantly boost home sales.
