Monday Market Update: Mid-Year Update From NAR®
Where expectations fell short – and where they surprised us.
Can you believe that July is here? The National Association of Realtors® recently summarized where the mid-year statistics have landed compared to beginning of year projections.
Readers can find the complete June 27, 2024 news release here. The Bobbi Decker Real Estate Team has summarized the key points below:
- Year-over-year, all regions in the US have reduced pending home sales. In May, national home sales slipped on average 2.1%, though the regional breakdown shows transaction losses in the Midwest & South yet gains in the Northeast & West.
- Total pending transactions are down 6.6% year-over-year. Yet regionally, the West is demonstrating increasing pending transactions (up 1.4%) month-over-month yet 2.1% fewer pending sales year-over-year.
- NAR predicts mortgage rates will remain above 6% in 2024 and 2025, even with the Federal Reserve cuts to the Fed Funds rate.
- National existing home sales are expected to rise to 4.26 million in 2024 and 4.92 in 2025 (from 4.09 million in 2023).
Notable feedback from NAR Chief Economist Lawrence Yun:
“The first half of the year did not meet expectations regarding home sales but exceeded expectations related to home prices. In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices.”
“The market is at an interesting point with rising inventory and lower demand. Supply and demand movements suggest easing home price appreciation in upcoming months. Inevitably, more inventory in a job-creating economy will lead to greater home buying, especially when mortgage rates descend.”
Have your own buying, selling or investing goals been impacted by the 2024 real estate trends so far? Are you surprised by the regional differences in the West and/or considering the opportunities they present?
If you need an amazing referral for an agent to support your best interests and advance your own real estate goals – please feel free to let us know!
All our best,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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