June 2024 Housing Market: What You Need to Know

We know that navigating the housing market can feel overwhelming. That's why we share these monthly insights from industry experts to help you make sense of what’s really going on. Whether you're buying your first home, moving to make room for a growing family, or downsizing as you enter retirement, we get that each life stage presents unique challenges. Throw in the ever-changing housing market and economic issues, and it can all get a little... well, confusing.

But don't worry, we've got you covered. Let's look at the latest data and insights to help you make sense of the housing market.

Getting the Price Right – Advice from Real Estate Expert Steven Thomas

Accurate pricing remains a critical factor for sellers looking to secure the best possible outcome in today's market. Steven Thomas, a real estate expert, emphasizes the importance of scrutinizing comparable pending and closed sales to set an appropriate price. With the housing market experiencing limited inventory for years, buyers eagerly monitor new listings, meticulously analyzing every detail, including condition, upgrades, amenities, style, curb appeal, and location.

Thomas highlights that the first week a home is on the market is crucial. Buyers, armed with knowledge of what they can afford, quickly assess the asking price in relation to the home's features. A well-priced home attracts the most attention during this period, while an overpriced listing can deter potential buyers, leading to longer market times and diminished enthusiasm. Therefore, setting the correct price from the onset is essential for maximizing profits and minimizing the time a property remains on the market.

Zillow's May 2024 Market Report: A Move Towards Balance

Zillow's latest market report for May 2024 gives us a good look at what's happening with housing trends right now. It shows that home value growth is slowing down, hinting at some potential price relief. More sellers are coming back to the market, with new listings up by 8% from last month and 13% from last year. But buyers aren't quite as active, leading to less competition and slower home price increases.

The report also mentions that inventory levels are starting to bounce back, with 22% more homes on the market compared to last year. Even though inventory is still 34% below what it was before the pandemic, this is the smallest gap we've seen in over three years. Because of this, buyer competition has eased off a bit, with the growth in the Zillow Home Value Index slowing from 4.4% in April to 3.9% in May. This situation might offer some good chances for buyers, as nearly a quarter of all homes listed in May had a price cut, making it possible to snag a deal below the list price.

Redfin's U.S. Housing Market Overview: Rising Prices and Migration Trend

Redfin's latest housing market overview shows that home prices in the U.S. went up by 5.1% in May 2024 compared to last year, with the median selling price now at $439,716. While the number of homes sold dipped slightly by 1.2% year-over-year, the average 30-year fixed mortgage rate is at 7.1%, up 0.6 points from last year. This rise in both home prices and mortgage rates is affecting both buyers and sellers.

The report also looks at housing supply and demand. In May 2024, there were 1,734,663 homes for sale in the U.S., up 13.8% from last year, with new listings increasing by 8.6%. Even with more homes available, the median time a home stays on the market is just 32 days, showing it's still pretty competitive out there. Plus, 35% of homes sold above their list price, while 19.2% had price drops, showing that competition varies across different areas.

Migration trends are also interesting. A lot of homebuyers are looking to move to new metro areas, with Sacramento, Phoenix, and Sarasota being the top choices. On the flip side, big cities like Los Angeles, New York, and San Francisco are seeing the most people moving out, likely due to changing preferences and affordability concerns.

National Association of Realtors (NAR) Insights: Existing-Home Sales and Price Trends

According to the National Association of Realtors (NAR), existing-home sales in April 2024 saw a slight dip, dropping by 1.9% from the previous month to an annual rate of 4.14 million. Sales were down across all U.S. regions, with the Northeast, Midwest, and South seeing year-over-year declines, while the West had a modest increase. The median price for existing homes rose by 5.7% from April 2023 to $407,600, marking the tenth month in a row of year-over-year price gains.

NAR's Chief Economist, Lawrence Yun, mentions that the higher-end market is seeing significant gains thanks to more available homes. The inventory of unsold existing homes went up by 9% from the previous month to 1.21 million units, which is about a 3.5-month supply at the current sales pace. This rise in inventory is expected to slow down the pace of price increases as more homes become available.

Key insights from the June 2024 housing market report:

1. Getting the Price Right: Real estate expert Steven Thomas stresses that accurate pricing is crucial for sellers. Homes that are priced right grab the most attention in the first week on the market, which can maximize profits and reduce the time the property sits unsold. Overpriced homes, however, tend to linger and lose buyer interest.
2. Market Moving Towards Balance: Zillow's May 2024 Market Report shows that home value growth is slowing down, with a lot more new listings hitting the market. This has eased buyer competition a bit and cooled off home price increases, which might be good news for buyers looking for some price relief.
3. Higher Home Prices and Mortgage Rates: According to Redfin, U.S. home prices in May 2024 were up 5.1% from last year, with a median selling price of $439,716. The average 30-year fixed mortgage rate is now 7.1%, up from last year, which is making it tougher for buyers to afford homes.
4. Shifting Migration Trends: Many homebuyers are looking to move to different metro areas, with Sacramento, Phoenix, and Sarasota being popular destinations. Meanwhile, cities like Los Angeles, New York, and San Francisco are seeing more people leaving, which reflects changing preferences and affordability concerns.
5. Existing-Home Sales and Inventory: The National Association of Realtors (NAR) reports a slight drop in existing-home sales for April 2024. However, the median sales price for existing homes went up by 5.7% from last year to $407,600. There’s also been a 9% increase in the inventory of unsold homes from the previous month, suggesting we might be moving towards a more balanced market.
   

Looking Ahead: What the Future Holds

The future of the housing market depends on a few key factors like inventory levels, mortgage rates, and buyer demand. As inventory starts to bounce back and mortgage rates hopefully stabilize, we might see the market becoming more balanced. For buyers, this could mean more chances to find homes at better prices, while sellers may need to rethink their pricing to stay competitive.

At Nuvision, we're here to support our members through these changing times. Our mission is to provide the resources and guidance you need to successfully navigate the ever-shifting housing market. Whether you're buying, selling, or investing, our team is ready to help you reach your goals and build the life you want.

The housing market is seeing some big changes. With more homes available and slower price growth, buyers might find some good opportunities. Sellers, on the other hand, will need to be smart about pricing to attract serious buyers. At Nuvision, we're dedicated to helping our members through these transitions, making sure you have the knowledge and support you need at every stage of your housing journey. For the life you build, Nuvision is here to guide you every step of the way.