National Real Estate Insights

National Real Estate Insights – August 2024 – Compass

The U.S. median house sales price in July, $428,500, declined slightly from the previous month’s peak:  Median sales prices often peak for the year in June.

Median house sales price appreciation since 1990:  An illustration of how home ownership so often builds household wealth over time. 

Q2 median house sales prices and year-over-year appreciation rates for selected metro areas: 89% of U.S. metros saw y-o-y price gains. Boosted by its “AI boom,” the San Jose metro became the first to see a quarterly median price over $2 million.

The median condo/co-op sales price in July, $367,500, also dropped slightly from its peak in June. Condos and co-ops are most common in urban markets.

This longer-term chart using 12-month-rolling data illustrates the dramatic changes in new listing activity in recent years:  The huge plunge after interest rates soared – mostly due to the “mortgage lock-in effect” – and the beginning of a recovery. 

The number of resale homes on the market has been climbing, a critical shift in supply and demand dynamics, and good news for buyers if it continues.

The number of new-construction single-family homes for sale is at its highest in 16 years, but these are highly concentrated in a limited number of markets. 

Due to factors such as limited inventory and interest rates, the number of existing-home sales continues to run low by long-term standards. This chart also illustrates the terrific impact of seasonality on market activity. 

Price reductions are still increasing as more sellers 
adjust asking prices to attract buyers. 

With a large majority of homeowners having low-interest-rate mortgages and high home-price appreciation rates since purchase, distressed property sales – such a big issue in the great recession – is a negligible issue now. 

Mortgage interest rates are at their lowest in well over a year, with many economists predicting further declines in 2024.

No economic indicator has been more obsessively watched – or had greater impact on interest rates and household finances – than inflation. Its recent decline below 3% has led many to predict the Fed will finally drop its benchmark rate in September.

Stock markets have recently been on a roller coaster ride, but remain 
much higher than at the beginning of the year. 

Please let me know if I can ever be of assistance 
to you, your family, friends or colleagues.

Vincent Kessel

Real Estate Advisor
M: 561.693.9291
vincent.kessel@compass.com

National and regional statistics are generalities, essentially summaries generated by thousands of unique, individual listings and sales occurring across different market segments. They are best seen not as precise measurements, but as broad, comparative indicators with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, and last period data should be considered preliminary estimates which may be revised in future updates. Different analytics programs sometimes define standard statistics differently – such as “active listings,” “days on market,” and “months supply of inventory”:  What is most meaningful are not specific numeric calculations but the trends they illustrate. Data from sources deemed reliable, but may contain errors, and subject to revision. All numbers to be considered approximate, and how these analyses apply to any particular property is unknown without a specific comparative market analysis.

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

National Real Estate Insights – August 2024

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