Are we shifting towards a buyer’s housing market?
A recent report from USA Today detailed changes that are occurring for folks looking to purchase a home. Inventory is up, home prices are cooling, and buyers in some areas may be seeing a market shift in their favor.
Dated cited in the report showed that the national median home price dipped 0.3% when comparing June 2024 to May 2024, and new listings are up 8.2% from a year ago. Affordable homes also saw an increase in listings with a 37% rise from June 2023 to June 2024, marking the eighth straight month of growth.
Ryan Sypek, an associate at Compass Real Estate in Los Angeles, stated, “What I’m hearing everywhere is, there’s just a lack of urgency from buyers right now, and urgency, and that feeding frenzy, is what drives prices up.”
Where did mortgage rates end Monday’s session?
The national average rate for a 30-year, fixed-rate mortgage continued its winning streak with a 0.01% decrease to 6.81%*. This marks the eighth consecutive day that the national average rate for a 30-year, fixed-rate mortgage decreased.
The only data point today will be retail sales data which can have an impact on the bond market. It’s not quite on the same level as an inflation report or a Fed meeting, but it has been known to cause the market to move. The next major data point isn’t until next week’s Personal Consumption Expenditures report.
Are new homes getting smaller?
Have you recently toured a new home and felt like the interior was smaller than you thought it would be? It wasn’t your mind playing tricks on you. The average newly constructed home in the U.S. in Q1 2024 has a median size of 2,140 sq. ft. That’s actually 160 sq. ft. smaller than the median size of 2023.
It’s done on purpose. Smaller homes are more cost-effective for buyers and affordability is everything in the current housing market. Realtor.com discussed the trend with several industry experts.
Jason Gelios, a real estate agent with Community Choice Realty in Southeast Michigan, said, “In the new-home build market, builders are striving to meet the demand of smaller-square-footage homes. Since the trend is now heading toward smaller and more affordable housing, it makes sense that builders would follow suit.”
However, homes aren’t done shrinking. They’ll likely continue to get smaller because designs are getting smaller. Jenni Nichols, the vice president of design for John Burns Research and Consulting, stated that “27% of production residential designers reduced the size of projects they designed last year to save on costs. Builders are trying to build homes that people can afford to buy since people have less buying power than they used to.”
* National average rates accurate as of 7/15/24 from and are not advertised rates from Guaranteed Rate.
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