Home Prices Rise in 2024: Latest Real Estate Trends

July 25, 2024

I think we can all agree that the housing market has been a rollercoaster, full of twists and turns. Now that we're in the second half of 2024, what are the experts saying about the overall housing market? Let’s dive into what’s happening nationwide.

According to the National Association of Realtors, home prices continue to rise due to persistently low inventory. As of May this year, the median U.S. home sale price is $407,600, up 5% from the same time last year. Inventory remains tight, with only 3.5 months' worth of homes available, making it still a seller’s market. Nationally, homes are typically on the market for an average of 26 days. First-time buyers are stepping up, accounting for 33% of recent home sales.

We're also seeing a notable presence of cash buyers, likely driven by higher mortgage rates, who represent 28% of all transactions. Interestingly, distressed sales or foreclosures make up just 2% of sales, indicating that most homeowners have built significant equity in their homes. Regionally, the picture varies. In the Northeast, sales are down 3% year over year.

Out West, sales have increased slightly, up 1.3%, with a significant spike in median home prices, rising 9.3% from May 2023. The South has seen a 3.1% decrease in existing home sales, but the median price is up 3.7% year over year. In the Midwest, there's been the smallest decline in sales, just 1% down from last year, while home prices have risen by 6%.

Remember, these are broad national numbers. Local markets can differ significantly. It's always best to consult with an experienced local area expert who understands the specifics of current pricing, days on market, and inventory levels in the area you’re interested in. If you'd like more information on the current inventory and prices in your area, please reach out to my team and me. We're here to help you strategize your next move and make home buying a reality for you.