Hello house hunters and home sellers! Dig into the latest housing market trends from Realtor.com. This week’s data offers a glimpse into what’s happening with mortgage rates, inventory levels, and the length of time that homes sit idle in the U.S. housing market. Introducing the latest trends in the housing market.
Weekly housing market update: How to read the numbers
| housing data | All changes from previous year | 2024 cumulative total | Week ending April 27, 2024 | Weeks ending May 4, 2024 | Weeks ending May 11, 2024 |
|---|---|---|---|---|---|
| Median suggested retail price | 0.2% | -0.5% | 0.0% | 0.0% | 0.0% |
| New property | 10.1% | 10.4% | 3.6% | 6.6% | 10.4% |
| active list | 21.1% | 33.3% | 33.7% | 35.0% | 33.3% |
| Time to market | 2 days early | 1 day late | 1 day early | 1 day late | 1 day late |
Stability of mortgage interest rates (at present)
Good news for those considering buying a home. Mortgage interest rates continued to rise for five weeks, but finally came to a halt last week. But here’s the problem. They’re still above the 7% mark. These high interest rates have kept some sellers on the sidelines, meaning the number of new listings coming to market isn’t as strong as it was when interest rates were low.
Both buyers and sellers are waiting with bated breath for interest rates to fall further. Lower interest rates would make buying a home more affordable and encourage more sellers to list their properties.
Advantages of down payment
One interesting trend is the size of the down payment. In the first quarter of 2024, buyers paid more money upfront compared to previous year and pre-pandemic levels. This can be due to several factors. First, because inventory is limited, buyers may use a larger down payment to make the offer more attractive.
Second, some buyers may have more cash on hand, either by selling their previous home or by increasing their income. Finally, when mortgage rates are high, paying more money upfront can help buyers minimize the size of their loan and lower their monthly payments.
prompting signs of inflation
There is a glimmer of hope when it comes to mortgage rates. This week’s Consumer Price Index (CPI) statistics, which measure inflation, showed some improvement. This is a welcome sign, as inflation can have a big impact on mortgage rates. Additionally, job market data suggests a potential cooling, which could also have a positive impact on interest rates.
What will happen to the home listing price?
Here’s a surprising trend. In fact, the median listing price has remained stable compared to last year for his second consecutive week. This may seem counterintuitive given rising mortgage rates, but there is an explanation. The number of homes for sale, especially those in the affordable price range ($200,000 to $350,000), is increasing every year. This influx of low-priced listings keeps the overall median price balanced.
However, it’s important to note that the median listing price per square foot is a different story. In fact, it increased by 3.8% compared to the previous year. This suggests that more small homes were available for sale last week than at the same time last year.
Sellers are still listed, but at a slower pace
Let’s talk about new listings, which are a good indicator of seller activity. The number of new listings this week increased by 6.6% from last year. This shows that sellers are still entering the market, but the year-over-year growth rate has slowed compared to the previous week. This may be a response to still-high mortgage rates.
The good news for buyers is that they have more options. The number of active listings (homes for sale) increased year over year for 27 consecutive weeks. In fact, last week saw more homes sold than any time since August 2020. This means buyers have more choice than at any time in about four years. However, it is important to note that inventory levels may vary by location. The South led the way with a huge 43% year-on-year increase in inventory, while the Northeast saw a modest increase of just 4%.
Homes are still selling fast, but not as fast.
The time it takes for a home to sell has increased slightly compared to last year. Homes were on the market one day longer this week than at this time in 2023. But the difference is small, and the overall pace of sales is still faster than pre-pandemic levels. This indicates that the housing market remains somewhat competitive, with many buyers vying for available homes.
The high down payment I mentioned earlier is also a sign of this competitiveness. Buyers are willing to put more money upfront to win bidding wars and make monthly payments more manageable.
Housing market forecast
The summer purchasing season is transitional period For the residential market. It won’t be a fierce seller’s market like in the past few years, but it won’t be a market where buyers make a lot of money at bargain prices either.it could be It’s a good time for patient buyers They are ready to jump when they find the right home at the right price.
Here are our summer housing market predictions. The trends discussed earlier can be summarized as follows.
stock: Inventory may occur stay high Compared to the last few years. This means that the buyer will: more choices and potentially more bargaining power. However, keep in mind that there are regional differences, with the South enjoying much higher inventory growth rates than the Northeast.
price: Nationwide, housing prices are expected to soar. cool down. The median listing price may even be stable compared to last year, but it depends on the mix of homes sold (e.g. more smaller homes could drive down the average price) .
Sales pace: The following changes may occur in the housing market: slight deceleration Compared to the breakneck speed of the past few years. Homes could be on the market for a few days longer than he did in 2023. This could be because mortgage rates remain high or simply because buyers have more options to choose from.
Mortgage interest rate: This is the biggest wildcard. Lower mortgage rates could increase buyer activity and reignite some bidding wars. However, in the case of fees, stay high or increase, buyer enthusiasm may wane further. The Fed’s decisions and overall economic indicators will have a major impact on mortgage rates this summer.
Key points: The housing market is in somewhat of a wait-and-see mode. Mortgage interest rates are an important factor for both buyers and sellers. Lower interest rates could lead to more activity on both sides of the market. Meanwhile, buyers are finding more options and sellers are still entering the market, albeit at a slower pace.
