Nov 18 2024 5 mins 1
The current state of the US housing industry is marked by rising home prices and limited supply. According to recent data, home prices are forecasted to increase by 2.5% in 2024 and 2.1% in 2025 due to strong demand from first-time buyers and a persistent shortage of homes[2].
As of September 2024, the median home-sale price reached $404,500, a 4.2% increase from the previous year, according to the National Association of Realtors (NAR)[1]. This marks the highest September median NAR has ever recorded and is only about $20,000 short of the all-time high.
Mortgage rates have come down from their peak but are still high, averaging 6.88% as of late October 2024, which is tempering home-buying activity[1]. However, experts predict that if rates were to drop further, it would spur the market for both buyers and sellers. The tight housing inventory, with just a 4.3-month supply, continues to favor sellers.
The volume of home sales has continued to soften over the course of 2024, with existing-home sales in September down by 3.5% from last year[1]. However, this trend may pivot if mortgage rates dip further. The S&P CoreLogic Case-Shiller Index reported a 4.25% year-on-year increase in seasonally adjusted terms, indicating that home prices are still rising despite falling demand[4].
In terms of supply and demand dynamics, the market remains a seller's market due to the limited inventory. As of March 2024, there were only 1.11 million units available for sale, representing a 3.2-month supply[2]. This tight inventory is partly because constrained mortgage rates deter current homeowners from selling.
Regulatory changes and market disruptions are also influencing the housing market. The Federal Reserve's late-2024 rate cuts are expected to provide relief and spur market activities[1]. However, the rental market is soft, with an estimated 8.9% vacancy rate, up from 7.5% in 2020[3].
Industry leaders are responding to current challenges by focusing on new construction and emerging investments in data centers and industrial real estate. The commercial real estate sector is recovering, particularly in the industrial and retail sectors[2].
In comparison to the previous reporting period, the housing market has seen a decline in home sales but an increase in home prices. The market dynamics are shaped by various factors, including mortgage rates, inventory levels, and regulatory changes. Overall, the US housing industry remains dynamic, with evolving factors influencing prices, mortgage rates, and inventory levels.
Key statistics and data from the past week include:
- Median home-sale price in September 2024: $404,500[1]
- Average 30-year mortgage rate as of late October 2024: 6.88%[1]
- Home-price growth in August 2024: 4.2%[1]
- Housing inventory supply as of September 2024: 4.3 months[1]
- Rental vacancy rate in 2023: 8.9%[3]
These statistics highlight the ongoing challenges and opportunities in the US housing industry, emphasizing the need for continued monitoring and adaptation to changing market conditions.
As of September 2024, the median home-sale price reached $404,500, a 4.2% increase from the previous year, according to the National Association of Realtors (NAR)[1]. This marks the highest September median NAR has ever recorded and is only about $20,000 short of the all-time high.
Mortgage rates have come down from their peak but are still high, averaging 6.88% as of late October 2024, which is tempering home-buying activity[1]. However, experts predict that if rates were to drop further, it would spur the market for both buyers and sellers. The tight housing inventory, with just a 4.3-month supply, continues to favor sellers.
The volume of home sales has continued to soften over the course of 2024, with existing-home sales in September down by 3.5% from last year[1]. However, this trend may pivot if mortgage rates dip further. The S&P CoreLogic Case-Shiller Index reported a 4.25% year-on-year increase in seasonally adjusted terms, indicating that home prices are still rising despite falling demand[4].
In terms of supply and demand dynamics, the market remains a seller's market due to the limited inventory. As of March 2024, there were only 1.11 million units available for sale, representing a 3.2-month supply[2]. This tight inventory is partly because constrained mortgage rates deter current homeowners from selling.
Regulatory changes and market disruptions are also influencing the housing market. The Federal Reserve's late-2024 rate cuts are expected to provide relief and spur market activities[1]. However, the rental market is soft, with an estimated 8.9% vacancy rate, up from 7.5% in 2020[3].
Industry leaders are responding to current challenges by focusing on new construction and emerging investments in data centers and industrial real estate. The commercial real estate sector is recovering, particularly in the industrial and retail sectors[2].
In comparison to the previous reporting period, the housing market has seen a decline in home sales but an increase in home prices. The market dynamics are shaped by various factors, including mortgage rates, inventory levels, and regulatory changes. Overall, the US housing industry remains dynamic, with evolving factors influencing prices, mortgage rates, and inventory levels.
Key statistics and data from the past week include:
- Median home-sale price in September 2024: $404,500[1]
- Average 30-year mortgage rate as of late October 2024: 6.88%[1]
- Home-price growth in August 2024: 4.2%[1]
- Housing inventory supply as of September 2024: 4.3 months[1]
- Rental vacancy rate in 2023: 8.9%[3]
These statistics highlight the ongoing challenges and opportunities in the US housing industry, emphasizing the need for continued monitoring and adaptation to changing market conditions.
