U.S. Housing Market Update: Key Trends as of September 2024

The Federal Reserve made its first benchmark rate cut since 2020 on September 18th, signaling a potential shift in the economic landscape. With inflation at its lowest point since early 2021 and mortgage rates falling to their lowest since February 2023, the economic environment is showing some positive momentum. This change has influenced various sectors, including the housing market. Let's dive into the latest real estate trends from August 2024:   READ THE REPORT

**1. National Sales Activity Sees Seasonal Decline**  
In August 2024, existing-home sales dipped by 3.1% compared to July, and were down 5.7% year-over-year. However, it’s important to note that August sales typically reflect offers accepted in July. Given the rate cut and improving economic conditions, it’s likely we’ll see more positive shifts in the coming months.

**2. Home Prices Experience Modest Gains**  
Year-over-year, the median price for single-family homes rose by 2.9%, while condos and co-ops saw a 3.5% increase. Though prices dropped from the record highs seen in June, this trend aligns with typical seasonal fluctuations.

**3. Listings Are on the Rise**  
Active listings in August 2024 surged by 23% from the same time last year, hitting their highest level since fall 2020. Along with this, price reductions on listings climbed 37%, reflecting evolving market dynamics in terms of supply and demand.

**4. Shifts in Buyer and Seller Activity**  
In August 2024, around 60% of homes went under contract within a month—down from 72% last year. Notably, 20% of homes sold above the listing price, a significant jump from 31% last August. Additionally, 26% of purchases were made in cash, compared to 27% in 2023. The median days on market was 26, a slight increase from last year’s 20 days, with homes receiving an average of 2.4 offers.

**5. Buyer Profiles**  
- 26% of buyers were first-time homebuyers.  
- 7% of purchased homes were intended for vacation use.  
- 8% of buyers bought homes sight-unseen.  
- Distressed property sales accounted for only 1% of total transactions.

**6. Contingencies and Contract Issues**  
Buyers were more willing to waive certain contingencies to secure deals. About 18% waived inspection contingencies, while 20% waived appraisal contingencies. However, some challenges persisted: 14% of contracts saw delays due to escrow and closing issues, and 5% were terminated before finalizing the sale.

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