May 2024 Realtor.com Stats

Today on LUXE BLOG, we have summarized recent data released from Realtor.com. The housing market saw significant changes in May 2024. Homes for sale increased, sellers were more active, and the market began shifting towards buyers. Today, we’re going to share simple stats without a bunch of fluff. Enjoy.

Housing Supply & Demand

The number of homes actively for sale increased by 35.2% compared to last year. This marked the seventh consecutive month of growth.

• Unsold homes up by 20.9%
• Newly listed homes up by 6.2%
• Median home price at $442,500, a 0.3% increase
• Median price per square foot up by 3.8%
• Homes spent 44 days on the market

The increase in homes for sale and a slight rise in prices indicate a market cooling off. Higher mortgage rates in April and May contributed to this slowdown. Sellers, cautious due to rising rates, still listed more homes than last year but at a slower pace.

Also Read: Zero Down Payment Loans Are Making A Return To The Market

Market Outlook

The housing market is slowly shifting in favor of buyers as inventory grows and mortgage rates stabilize.

• Sellers’ caution due to mortgage rates
• Median list price up 37.5% since May 2019
• Price per square foot up 52.7% since May 2019

Sellers from pre-pandemic times are poised to benefit from significant price increases, making it a profitable time for many.

Active Home Inventory

May saw a substantial increase in active home listings, particularly in the $200,000 to $350,000 range.

• Inventory up by 35.2% from last year
• Gap between current and pre-pandemic inventory levels narrowing

Despite this growth, inventory remains below pre-pandemic levels. However, it is expected to surpass 2020 levels soon, marking a significant milestone.

Pending Home Listings

The number of homes under contract but not yet sold increased by 2.7%.

• Pending listings growth slowed compared to last month
• Expectation of slower sales in May and June

Sellers continued to list homes, but the growth rate dipped due to rising mortgage rates. The normalization of selling activity is anticipated as rates decline over the next year.

Also Read: U.S. Housing Market Lacks 1.5 Million Units, Says Freddie Mac

Regional Inventory Trends

All regions saw inventory growth over the previous year, with the South and West leading the way.

• South: +47.2%
• West: +34.5%
• Midwest: +20.5%
• Northeast: +9.4%

Metros like Tampa, Phoenix, and Orlando saw the highest inventory growth. Despite higher inventory, many areas still have lower levels compared to pre-pandemic years.

Time On Market

Homes spent slightly more time on the market than last year but less than pre-pandemic levels.

• Typical home on market for 44 days
• South: +4 days on market
• Midwest: -3 days on market
• Northeast: -5 days on market
• West: -2 days on market

The increase in time on market indicates growing inventory and sluggish sales. However, homes are still selling faster than pre-pandemic.

Median Listing Prices

The median list price remained stable, but price per square foot rose.

• Median list price: $442,500
• Price per square foot up by 3.8%
• Median list price up 37.5% since May 2019

Higher mortgage rates increased monthly costs for buyers, affecting affordability.

Also Read: How The Lock-In-Effect Is Affecting Greater Phoenix’s RE Market

Regional & Metro Area Price Trends

Prices remained stable in the South but rose in other regions.

• South: +0.0%
• Northeast: +6.1%
• Midwest: +4.4%
• West: +0.8%

Metro areas like Buffalo, Cleveland, and St. Louis saw significant price increases. Sellers from pre-pandemic times stand to benefit the most.

Conclusion

The housing market in May 2024 showed signs of shifting towards buyers, with increased inventory and stable prices. Sellers are cautious due to rising mortgage rates, but those who bought before the pandemic are poised for significant profits. If you enjoyed this content, please stay tuned to LUXE BLOG for more updates!