WASHINGTON, D.C. – (By Dale King Realty News Report) – Sales of existing homes ticked up modestly in July, breaking a four-month streak of declines and offering a tentative sign that market conditions may be stabilizing, according to an analysis released this week by the National Association of Realtors (NAR).
Total existing-home sales — a NAR measure that includes completed transactions for single-family homes, townhouses, condominiums and co-ops — rose 1.3 percent in July to a seasonally adjusted annual rate of 3.95 million, the association reported. Despite the monthly gain, sales were down 2.5 percent from July 2023, when the annual rate stood at 4.05 million.
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are seeing more choices, and affordability is improving due to lower mortgage rates.”
Regional Breakdown
Regional performance varied across the country. In the Northeast, existing-home sales climbed 4.3 percent from June to an annual rate of 490,000 in July, marking a 2.1 percent increase compared with July 2023. The median price in the region was $505,100, up 8.3 percent year over year.
The Midwest recorded a July pace of 920,000 existing-home sales, reflecting a 5.2 percent decline from the same month last year. The median price there was $321,300, a 4.5 percent increase from July 2023.
In the South, sales rose 1.1 percent from June to an annual rate of 1.79 million in July but were down 3.8 percent from a year earlier. The median price for a home in the South was $372,500, up 2.3 percent year over year.
The West saw existing-home sales increase 1.4 percent in July to an annual rate of 750,000, a 1.4 percent gain from July 2023. The median price in the West was $629,500, up 3.4 percent compared with the prior year.
Year over year, sales rose in the Northeast and the West while declining in the Midwest and the South.
The median existing-home price across all housing types — the price at which half of homes sold for more and half sold for less — was $422,600 in July 2024, up 4.2 percent from $405,600 a year earlier. All four U.S. regions posted price gains over the past year.
Single-family and Condo/Co-op Results
Single-family home sales increased 1.4 percent in July to a seasonally adjusted annual rate of 3.57 million, though they remained 1.4 percent below last year’s pace. The median existing single-family home price was $428,500 in July, a 4.2 percent increase from July 2023. This marked the 13th consecutive month of year-over-year price gains for single-family homes, NAR noted.
Sales of existing condominiums and co-ops held steady in July at a seasonally adjusted annual rate of 380,000 units, unchanged from June but down 11.6 percent from July 2023’s 430,000 units. The median condo and co-op price was $367,500 in July, up 2.7 percent from $357,900 a year earlier.
“The median price of condominiums is lower than single-family homes, yet the condo market is underperforming,” Yun said. “Rising maintenance and insurance costs have reduced some of the appeal for condominium ownership.”
Other Report Features
NAR’s Realtors’ Confidence Index highlighted several additional market details for July:
- Homes typically remained on the market for 24 days in July, up from 22 days in June and 20 days in July 2023.
- First-time buyers accounted for 29 percent of sales in July, unchanged from June but down from 30 percent in July 2023. NAR’s 2023 Profile of Home Buyers and Sellers reported an annual share of 32 percent for first-time buyers.
- All-cash transactions comprised 27 percent of sales in July, slightly below June’s 28 percent but above last year’s 26 percent.
- Individual investors and second-home buyers, who make up a sizable portion of cash purchases, bought 13 percent of homes in July, down from 16 percent in both June 2024 and July 2023.
- Distressed sales — foreclosures and short sales — represented just 1 percent of transactions in July, essentially unchanged from both the prior month and the year-ago level.
On the mortgage front, Freddie Mac reported that the average rate for a 30-year fixed-rate mortgage was 6.49 percent as of Aug. 15. That represents a slight uptick from 6.47 percent one week earlier but remains below last year’s 7.09 percent average.
Aug. 24, 2024 Realty News Report Copyright 2024
Photo credit: Ralph Bivins, Realty News Report Copyright 2024
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FILE: Nation’s Home Sales Rose in July NAR. Existing homes Nation’s Home Sales Rose in July 2024