Why July's Home Price Dip Signals a Buyer-Friendly Market

Lisa Mailhot  |  August 7, 2024

Buyers

Why July's Home Price Dip Signals a Buyer-Friendly Market

 

As we moved through the dog days of summer, something unusual happened in the housing market: for the first time during a peak sales month, national median home prices dipped. This July, the typical home list price fell from $445,000 in June to $439,950, reflecting broader economic shifts and changing market conditions.

Market Slowdown: A Closer Look

The dip in home prices is part of a broader trend of market normalization. With mortgage rates hitting their lowest point since March, many potential buyers are pausing their home search, anticipating further rate decreases. This cautious approach has led to the slowest sales pace since 2020, compelling sellers to adjust their expectations and often their prices. In fact, nearly 19% of homes saw price reductions in July—a significant increase from the previous year.

Rising Inventory: More Options for Buyers

Despite fewer sales, the number of available homes has grown considerably, with a 36.6% increase in listings compared to last year. This marks the ninth consecutive month of inventory growth, reaching a post-pandemic high. Such an increase is particularly pronounced in the South, which saw the largest jump in active listings at nearly 48%.

Fresh Listings and Regional Insights

Interestingly, the West and Northeast U.S. have seen an uptick in newly listed homes, with the West experiencing a 7.3% increase. Major metros like Seattle, San Jose, and Columbus are leading this surge, offering fresh opportunities for buyers eager for new options.

The Home Price Paradox

While the national median list price has slightly decreased, the price per square foot has risen by 3.1% from last year, indicating a shift towards smaller, more affordable homes. This growth is most evident in homes priced between $200,000 and $350,000, which have seen the most significant inventory increase.

Lingering Homes: A Slower Pace

Homes are staying on the market longer, with an average of 50 days in July—five days more than last month and the previous year. This slowdown in turnover suggests that while buyers are more cautious, the market might see increased activity if mortgage rates continue to decline.

Bottomline

If you're considering a move and seeking a market that's becoming increasingly buyer-friendly, now might be a perfect time. As the housing market continues to heal and adjust to economic conditions, opportunities for favorable deals are on the rise. For those looking to move into a new home, especially in vibrant communities, let's connect and explore how you can benefit from the current market dynamics.

 

 

Reference: Taylor, J. (2024, August 1). Home Prices Fell in July for the First Time—This Is Good News for Buyers as the ‘Market Is Healing’. Realtor.com.


RECENT BLOG POSTS

Key Strategies for Tomorrow's Wealth Managers

Explore three crucial strategies wealth managers must adopt to prepare for significant industry shifts, including the integration of technology, recruitment of new adv… Read more

Harris' Homeownership Plan Boosts Homebuilder Stocks Amid Fed Rate-Cutting Expectations

Homebuilder stocks surge as Kamala Harris proposes housing reforms and the Federal Reserve hints at rate cuts. Discover how these factors could reshape the real estate… Read more

Fine-Tuning Financial Forecasts: July's Inflation Insights and Mortgage Trends

Explore the latest insights from July's inflation data and its subtle impact on future mortgage rates. This article delves into the PCE price index, Federal Reserve st… Read more

JLo and Affleck's $68 Million Split: The Hefty Price Tag of Celebrity Mansions

Explore the staggering monthly costs associated with maintaining a celebrity mansion, as revealed by Jennifer Lopez and Ben Affleck’s recent real estate troubles. Lear… Read more

Supreme Court Showdown: NAR's Strategic Defense Against DOJ's Renewed Probe

Explore the escalating legal battle as the National Association of Realtors (NAR) prepares to take its confrontation with the Department of Justice (DOJ) over alleged … Read more

Securing Your Legacy: Choosing the Right Trust for Wealth Protection

Explore the differences between incentive and protective trusts to safeguard your wealth and support your heirs. Learn how each trust type can influence the next gener… Read more

California's Bold Move: New Laws to Tackle Housing Crisis

Governor Newsom signs two bills expanding housing options in California. Learn how AB 2835 and AB 3057 aim to address homelessness and increase affordable living space… Read more

Patience Pays Off: The Delayed Benefits of Fed Rate Cuts for Homeowners and Investors

Homeowners and investors anticipating lower mortgage rates after the Fed cuts interest rates may have to wait. Learn why longer-term Treasury yields are a better indic… Read more

Homie's Antitrust Lawsuit Against NAR Unveiled

Discover the groundbreaking antitrust lawsuit filed by Homie against the National Association of Realtors and key industry players, alleging conspiracies to stifle inn… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most