May National Market Update

May 8, 2024

Welcome to the latest update on the housing market! Let's dive into the national housing scene. Realtor.com’s recent data paints an optimistic picture for both buyers and sellers. Existing home sales surged by a remarkable 9.5% from January to February, marking the most significant month-over-month increase in a year. Experts attribute this surge to the decline in mortgage rates, which began in the Fall of 2023.

Realtor.com’s Chief Economist, Danielle Hale, notes, “Mortgage rates plummeted from late October through mid-January and remained stable through February, reaching their lowest point since May 2023. This dip in rates reduced buyers’ closing costs and encouraged more activity in the market.” Nationally, home prices continue to climb, with a year-over-year increase of approximately 4.7%, reaching a median price of $384,500. Additionally, there's a 10.3% uptick in housing supply compared to this time last year.

However, first-time homebuyers are facing challenges, often outbid by cash offers and investors. Cash transactions accounted for about a third of all existing home sales in February, up from approximately 28% last year, primarily driven by investors and second-home buyers. Additionally, it was expected for mortgage rates to have dropped by this point in 2024, and they have remained fairly steady these last few months.

Now, the predictions are pointing toward a reduction in mortgage rates later in 2024. Fortunately, foreclosures and short sales remain low, representing only 3% of total sales. Regionally, the West, South, and Midwest are experiencing robust sales, while the Northeast lags slightly behind. Looking ahead, Realtor.com anticipates Spring as the optimal time for sellers to capitalize on the market.

If you're curious about housing data specific to our local San Luis Obispo County market, check our May local market update & don't hesitate to reach out. We're here to assist you every step of the way. Get in touch today for expert guidance on your real estate journey.