August 2024 Housing Market Report

August brought more twists and turns to the housing market, reflecting a mix of opportunities and challenges for buyers and sellers alike. With prices fluctuating and inventory levels shifting, it's a market that requires close attention. Whether you’re buying or selling, keeping up with market trends is important to make the right moves in today’s market. Here's a breakdown of what you need to know from the latest housing reports.

Zillow’s Insights: Growth Slows Down a Bit

Zillow’s latest forecast shows home values going up by 1.8% in 2024, which is a bit less than the 2% growth they predicted last month. They’re also expecting 4.1 million home sales this year, which is 1% more than last year but slightly below their earlier forecast.

So far this year, the number of homes sold hasn’t quite kept up with the number coming on the market. As of July, inventory was 25% higher than a year ago. Looking ahead, Zillow thinks that as inflation eases and mortgage rates drop, it could help make homes more affordable, which might boost sales and listings over time.

Redfin’s Findings: More Homes, But Buyers Are Hesitant

Redfin reports that while existing home sales in July went up slightly by 0.6% from June, they were still 2% lower than last year, making it the lowest July on record. Pending sales also dropped by 3% from June and 6% from last year, marking the biggest declines in almost a year.

Home prices are still just below their all-time high, which is keeping some buyers on the sidelines even though mortgage rates have dipped. Nearly 60,000 home-purchase agreements were canceled in July—the highest percentage ever for that month. On the plus side, the number of homes for sale went up by 14%, giving buyers more options and room to negotiate.

National Association of Realtors: Sales Pick Up, But It’s Still Tough

The National Association of Realtors (NAR) noted a small 1.3% bump in existing-home sales in July, ending four months of declines. Even with this increase, sales were still 2.5% lower than they were a year ago. The median home price went up by 4.2% from July 2023, marking 13 straight months of price increases.

Inventory also went up slightly, with 1.33 million homes available at the end of July, representing a 4-month supply at the current sales pace. While lower interest rates are helping a bit with affordability, the market is still slow, and both buyers and sellers are facing challenges.

Steven Thomas: The Reality Check for Sellers

Many sellers are approaching the market like it’s still as hot as it was in 2023 or earlier this year, but they’re quickly finding out that things have slowed down. A surprising 54% of homes on the market have been sitting for at least a month. Steven Thomas likens today’s sellers to first-time anglers—full of enthusiasm but ending up waiting a lot longer for a bite. The market has shifted from a hot seller’s market to something more balanced, where getting the price right is key to making a sale.

Top Market Insights from August 2024

1. Home Values Slowing Down but Still Rising: Zillow predicts a 1.8% increase in home values for 2024, which is slightly down from the 2% growth they forecasted last month. This indicates a gradual slowdown in price appreciation, but home values are still expected to rise.
2. Inventory Levels Are Up: Inventory levels have increased significantly, with a 25% rise compared to a year ago, according to Zillow. This rise in inventory gives buyers more options and indicates a shift toward a more balanced market.
3. Housing Starts Are Declining: Housing starts fell by 6.8% in July from the previous month and are down 16% year-over-year. This decline, especially in single-family housing starts, reflects a cautious outlook from builders due to slower home sales and rising inventory.
4. Buyers Are Hesitant: Despite a drop in mortgage rates, buyers are still hesitant. Redfin reports that pending sales fell by 3% from June and 6% from last year. This hesitancy is partly due to high home prices remaining near record levels, keeping many buyers on the sidelines.
5. Increased Cancellations of Home-Purchase Agreements: Nearly 60,000 home-purchase agreements were canceled in July, which is the highest percentage for any July on record, according to Redfin. This reflects growing buyer caution amid economic uncertainty and high costs.
6. Rental Market Cooling: The rental market is cooling, with one-third of property managers offering concessions to attract tenants. While rent growth continues, the pace has slowed, and more rental options are becoming available due to a surge in multifamily construction.
7. Existing-Home Sales See Modest Gains: The National Association of Realtors reported a 1.3% increase in existing-home sales in July, ending a four-month decline. However, sales are still down 2.5% compared to a year ago, indicating that the market remains sluggish despite the slight improvement.

The August 2024 housing market is a mix of ups and downs. While more homes are available and prices are somewhat stabilizing, high costs and uncertainty are still making things tricky for buyers. At Nuvision, we're here to help you make sense of it all. We provide access to industry experts and these reports so you have the information and support you need, whether you’re buying, selling, or investing. Our team is ready to help you reach your goals.