August 2024 Real Estate Market Update

Median existing-home sales prices set records in May, climbing 5.8% year over year, marking the 11th consecutive month of gains, says the National Association of Realtors (NAR). Every sales region recorded price gains. While beneficial for sellers, these prices create a divide between homeowners and aspiring buyers. Lawrence Yun, NAR's chief economist, notes that typical mortgage payments are more than double those of pre-2020 homes, but first-time buyers understand the long-term benefits of owning.

Growing Inventory

Inventory levels have improved significantly from a year ago. This increase in inventory is a positive development for a housing market that has been hampered by low supply for years. “Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” according to Yun.

Buyer Demographics

According to the Realtors Confidence Index, the average property was available for 24 days in May, down from 26 days last month but up from 18 days a year ago. First-time buyers made up 31% of all buyers in May, compared to 28% in May 2023. All-cash sales accounted for 28% of transactions, up from 25% a year ago. Individual investors and second-home buyers, who make many all-cash sales, represented 16% of buyers, up from 15% in May 2023.

Regional Sales Breakdown

Northeast: Existing-home sales annual rate is 480,000; unchanged from April 2024 but down 4% from May 2023.

Midwest: Existing-home sales annual rate of 1 million; unchanged from April 2024 but up 1% from May 2023.

South: Existing-home sales annual rate of 1.87 million; a decrease of 1.6% from April 2024 and 5.1% from May 2023.

West: Existing-home sales annual rate of 760,000; unchanged from April 2024 but a decrease of 1.3% from May 2023.

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