October 2024 Real Estate Market Update: New Home Sales Surge, Inventory Rises
"All I ask is the chance to prove that money can’t make me happy.” — Spike Milligan
Welcome to the latest real estate market update for October 2024. Here’s a look at some important trends and what they mean for buyers, sellers, and investors.
New Home Sales Are Up
In September, sales of new single-family homes continued to increase, rising 4.1% to the highest level in 16 months. Supply has grown significantly, over 200% from the 2022 low, and the median sale price has eased by 7.4% from its 2022 peak. For buyers, this may present an ideal opportunity to explore new construction options.
Existing Home Sales Slow, Inventory Rises
Sales of existing homes saw a slight decline, with a modest 3% annual increase in the median price. Inventory, however, has grown by 23% over the last year, moving us closer to a balanced market with a current 4.3-month supply of homes. This increase in available homes could create more options for buyers.
Fannie Mae’s Forecast
Looking forward, Fannie Mae anticipates slow economic growth for 2024, with a rebound in home sales and a 3.6% home price increase expected by 2025. This positive outlook is driven by more sustainable consumer spending trends.
Financial Market Overview
The stock market had a mixed week, with the Dow and S&P 500 dipping slightly after a series of gains, while the Nasdaq saw a modest increase. Mortgage rates saw another slight increase, so buyers are encouraged to check rates frequently.
Did You Know?
It’s rare for home prices to decline. Excluding the Great Recession, U.S. home prices have only seen an annual drop once since 1942.
What’s Ahead?
Keep an eye on home price gains, pending sales, and construction spending, along with inflation data and employment numbers, as these factors will continue to impact the market’s direction.
If you’d like to discuss how these trends may affect your real estate plans, feel free to reach out!
