Here’s the latest market update! Let’s dive into the numbers for the week ending September 23, 2024.
Mortgage rates
This week, mortgage rates take center stage—not for their movement, but for the changes they’ve triggered. We now know there’s another rate cut coming in November and the expectation is we will bounce between 6% and 6.25% leading up to this one.
Inventory
Next, let’s discuss inventory. The number of unsold homes has risen again this week across the country, a trend we can attribute to the drop in mortgage rates. Just like buyers, sellers are seeking favorable conditions, and right now, buyer purchasing power is at its highest in nearly two years. Currently, there are 725,000 single-family homes on the market—37% more than the same week last year. Interestingly, despite this increase in inventory, home prices have not declined.
Demand
Now, on to demand. Although it’s still early, there are signs that lower rates may be stimulating activity. New sales this week are up 4% compared to the same week last year. It will be fascinating to monitor the new sales trends in the coming months to determine whether this week’s uptick was an anomaly or if lower rates are genuinely “unsticking” sales.
Pricing
Finally, let’s discuss pricing. The median home price in the U.S. has risen to $389,000, reflecting a 1.6% increase for the week. We are currently projecting home price appreciation between 3-5% for the year. Notably, this marks the second consecutive week of rising prices for homes going into contract. This trend is significant because pending sales prices serve as a strong indicator for future price movements, as these sales won’t be officially reported until they close in a month or two.
That wraps up this week’s update! If you have any thoughts or questions, feel free to reach out at hello@flyhomes.com.
Stay tuned for more market updates next week!
Sources:
- Altos Research
- HousingWire
- St. Louis Federal Reserve
