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

Mortgage Rates Are Up—What Does It Mean for You?

Mortgage demand is faltering as rates climb to the highest levels since mid-2024. Discover how this trend impacts buyers, refinances, and market expectations in 2025, … Read more

Rising from Ashes: Housing Challenges Amid LA Wildfire Devastation

As wildfires devastate LA County, real estate agents rally to provide housing for displaced families amid surging rental demand. Discover the community's resilience an… Read more

Top 15 U.S. Cities Where Quality of Life Shines Bright in 2024–25

Discover the 15 U.S. cities leading in quality of life for 2024–25, as ranked by U.S. News & World Report. From affordability challenges to cultural gems and natural b… Read more

She-Elites Are Shaping the Future of Luxury Real Estate

Women are redefining the luxury real estate market, emerging as powerful decision-makers in high-end home buying and selling. Discover how this trend is transforming t… Read more

Shield Yourself: How to Spot and Avoid Real Estate Scams

Protect your investment! Learn how to identify red flags in real estate scams, from wire fraud to fake listings. Safeguard your hard-earned money with these expert tip… Read more

Winter Freeze: Real Estate Market Sees Sharpest Slowdown in Two Years

Discover the trends that froze the real estate market in December, as homes lingered on the market and inventory plunged. What does this mean for buyers and sellers he… Read more

California’s New Wildfire Insurance Rule: What It Means for Homeowners

California's new insurance regulation requires coverage in wildfire-prone areas but may result in significant cost increases for homeowners. Learn how this impacts hom… Read more

2025 and Beyond: Navigating the Turbulent Waters of Real Estate Antitrust Litigation

As real estate braces for 2025, antitrust litigation remains a key battleground. Learn about the appeals, buyer-side lawsuits, policy shifts, and DOJ scrutiny reshapin… Read more

Understanding Quitclaim Deeds: When and Why You Might Need One

Quitclaim deeds are a quick and efficient way to transfer property between family members or spouses without a sale. Learn what a quitclaim deed is, how to create one,… 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