What does the latest housing market data say?
Altos Research returned with their most recent housing market report. The latest data indicates that inventory is continuing to increase while home prices are holding steady at current levels.
According to the most recent data, home inventory is up 38% from the same time period last year with 621,000 available units. However, growth in home inventory is starting to slow.
When it comes to home prices, they’ve continued to hold at around the same levels for the past month. The current median price of a new contract in the U.S. sits at $398,000, that’s up 3.7% from a year ago, but is down slightly from the peak in May 2024.
Which markets could see price drops by the end of 2024?
An article recently posted on Yahoo! Finance detailed 10 markets that may see home prices fall by the end of the year.
The market predicted to see the biggest decrease in home prices? According to the data used, Washington D.C. is expected to see home prices end the year lower by as much as 10.2%.
Eric Preston, the CEO and founder of Agent Launch, said, “A lack of buyers due to mortgage rates and economic issues are the main culprits.” Preston also stated that median home price in the Washington D.C. area has already seen a dip this year, and could fall another 3%-to-5% by the end of the year.
When will housing become more affordable?
Homebuyers have struggled with home affordability for over two years now. Part of the challenge is elevated mortgage rates, but home prices have also been an issue for homebuyers to navigate. A recent article from Forbes surveyed market experts to better understand when housing may become more affordable again.
When asked about the housing market, Keith Gumbinger, a vice president at HSH.com, stated, “For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher. This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.”
Gumbinger also urged caution when it came to mortgage rates dropping. He said, “Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once.”
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