July 2024 Housing Market Report

The housing market saw some big changes this month. With rising prices, more homes on the market, and changing buyer habits, there's a lot to go over.

We know it's confusing to sift through all the headlines, but staying on top of these trends is key to making the best decisions for your future. That's why we've pulled together the latest info from top industry sources. At Nuvision, we're here to support you—whether you're buying, selling, or investing. Our housing reports are designed to give you the insights you need to make the right decisions for your financial future.

Zillow's Insights: Rising Home Prices and What They Mean

Zillow says that $1 million starter homes are now common in 237 U.S. cities, up from just 84 cities five years ago. The housing shortage, made worse by the pandemic, has driven prices way up. Because of these rising prices, a lot of people are finding it harder to buy their first home and are getting pushed out of the market.

Nationwide, a typical starter home is valued at $196,611, which is still affordable for a median-income household. But these values have jumped 54.1% over the past five years, delaying many first-time home purchases. The median age for first-time home buyers is now 35.

Despite these challenges, there's some good news. More homes are coming on the market, giving buyers more choices and leverage. Price cuts are also hitting record highs for this time of year, making it a bit easier for buyers.

National Association of Realtors: The Latest Real Estate Data

According to the NAR, existing-home sales dropped 5.4% from May to June 2024, with an annual rate of 3.89 million. This is also a 5.4% decline from June 2023. The national median existing-home price hit a record $426,900, up 4.1% from last year.

Inventory levels rose to 1.32 million units by the end of June, a 3.1% increase from May and a 23.4% jump from a year ago. It now takes about 22 days for a home to go from listing to contract, compared to 18 days a year ago. All four U.S. regions saw sales declines, with the Midwest experiencing the biggest drop at 8.0%.

Redfin's Findings: What You Need To Know

Redfin reports that U.S. home prices were up 4.0% in June 2024 compared to last year, with a median price of $442,479. However, the number of homes sold fell by 11.8% year over year. The average 30-year fixed mortgage rate is now 6.9%, up slightly from last year.

Housing supply increased by 14.3% year over year, with 1.78 million homes for sale. The median days on the market increased to 32, showing a slowdown in sales. Fewer homes are selling above the list price, while more are seeing price drops.

Migration trends show that 25% of homebuyers searched to move to a different metro area, with Florida, North Carolina, Arizona, South Carolina, and Tennessee as the top destinations. Meanwhile, California, New York, Illinois, Washington, and Massachusetts saw the most people leaving.

Key Takeaways from This Month's Housing News and Industry Data

1. $1 Million Starter Homes on the Rise Zillow reports that 237 U.S. cities now have starter homes priced at $1 million or more, up from 84 cities five years ago. This rise is driven by the pandemic-related housing shortage.
2. Decline in Home Sales Both new and existing home sales have dropped. The NAR noted a 5.4% fall in existing home sales from May to June 2024, while Redfin reports an 11.8% year-over-year drop in homes sold.
3. Pending Sales and Buyer Hesitancy: Pending home sales are down 5.7% year over year, marking the biggest drop in nearly nine months. Many buyers are waiting on the sidelines due to high prices and economic uncertainty.
4. Rising Home Prices Home prices continue to rise. The NAR reported the national median existing home price at a record $426,900 in June, a 4.1% increase from last year. Redfin also noted a 4.0% rise in U.S. home prices year-over-year.
5. Increased Inventory Levels Inventory levels are climbing, giving buyers more options. The NAR saw a 3.1% month-over-month increase in inventory, and Redfin reported a 14.3% year-over-year rise in housing supply.
6. Market Shifts and Buyer Hesitancy Even with more homes on the market, many buyers are still cautious. Redfin found that nearly two-thirds of home listings have been on the market for over a month. Additionally, 15% of home purchase agreements were canceled in June, the highest percentage for any June on record.
7. Price Cuts and Incentives: About 29% of builders cut prices in June to boost sales, up from 25% in May. Many builders are also offering incentives to attract buyers, such as rate buydowns.

Imagine driving down the freeway with cruise control set to 75 miles per hour, listening to your favorite playlist, and enjoying the perfect A/C temperature. Everything seems smooth until your GPS warns of a 20-minute traffic delay. You turn off cruise control, and the stop-and-go traffic begins. Finding an alternative route is pointless—you just have to grin and bear it.

According to Real Estate Expert Steven Thomas, that's how it feels to be a seller right now. The market was speeding back in the spring, but things have slowed considerably. What was once a hot seller's market is now much more balanced, giving buyers a much-needed breather.

At Nuvision, we're dedicated to helping our members make sense of all the headlines and news. This is why we provide our members access to industry experts and these monthly housing reports, making sure you have the knowledge and support you need at every stage of your financial journey. Whether you're buying, selling, or investing, our team is ready to help you reach your goals.