As the real estate market continues to evolve, it's crucial for REALTORS® to stay informed on the latest trends affecting our industry. According to the National Association of REALTORS® (NAR), August brought some mixed signals to the housing market, with existing-home sales dipping in several regions. Here’s what NCJAR members need to know.
National Sales Overview
Existing-home sales fell by 2.5% from July to August 2024, marking a seasonally adjusted annual rate of 3.86 million transactions. Compared to the same time last year, the market has seen a 4.2% drop in sales, down from 4.03 million in August 2023. However, NAR’s Chief Economist, Lawrence Yun, expressed cautious optimism, noting that decreasing mortgage rates and increased inventory could create more favorable conditions in the coming months.
Inventory on the Rise
One bright spot for home buyers is the rise in inventory. By the end of August, total housing inventory was 1.35 million units, a 22.7% increase from one year ago. This brings the unsold inventory to a 4.2-month supply, up from 3.3 months in August 2023. While this signals better conditions for buyers, the Northeast, where many NCJAR members operate, still faces limited supply, giving sellers more leverage in the market.
Price Trends
Despite the decline in sales, home prices continue to rise. The median price for all housing types in August was $416,700, a 3.1% increase from last year. Notably, the Northeast saw the most significant price increase, with the median home price climbing 7.7% to $503,200.
REALTORS® Confidence Index
According to the REALTORS® Confidence Index, properties remained on the market longer in August, averaging 26 days compared to 24 days in July and 20 days in August 2023. First-time buyers accounted for just 26% of transactions, down from 29% in both July and August of last year. This matches the all-time low seen in November 2021, which may indicate affordability challenges for this group.
Regional Breakdown: What It Means for NJ
While sales in the Northeast fell 2.0% from July, they remained stable year-over-year at an annual rate of 480,000 transactions. This stability, coupled with rising prices, underscores the continued strength of the market in our region. NCJAR members should be mindful that while inventory is rising nationally, the local market may still experience tight conditions, requiring sellers to stay strategic in pricing and marketing.
A Look Ahead
Though the August numbers reflect a challenging landscape, there is potential for improvement as mortgage rates decrease and inventory grows. For REALTORS®, this is a crucial time to keep clients informed about the shifting market dynamics and to position themselves for success as conditions evolve.
Stay tuned to NCJAR for more updates, and continue leveraging these insights to serve your clients effectively!
