July 2024 Market Highlights are in!
Whether you're a current homeowner or a potential buyer, understanding the market trends can help you make informed decisions. Today, we'll dive into various aspects of the real estate market, including single-family median sale prices, national home price appreciation, mortgage interest rates, and more. Let's get started!
Mortgage interest rates have been a hot topic in the real estate world, and for good reason. In 2023, we saw rates gradually rise from historic lows, but they have remained relatively stable throughout 2024. As of July 2024, the average 30-year fixed mortgage rate is around 6.5%, while the 15-year fixed rate hovers at 5.9%.
While these rates are higher than the rock-bottom rates of 2021, they are still historically low. For potential buyers, this means that financing a home is still affordable, making it an excellent time to enter the market. Current homeowners may also consider refinancing to lock in these favorable rates.
Inflation has been a concern for many, and it's essential to understand its impact on the real estate market. The Consumer Price Index (CPI) has been at a steady rate from Jun 2023 to Jun 2024. As of July 2024, the CPI is down to 2.9% year-to-date. This decrease in inflation affects various aspects of the economy, including housing.
Higher inflation can lead to increased construction costs, which, in turn, can affect home prices. However, it also means that real estate can be a valuable hedge against inflation. As the cost of goods and services rises, so does the value of tangible assets like real estate. For homeowners, this can translate into increased property values over time.
July 2024 has been an exciting month for the U.S real estate market, particularly for single-family homes. The median sale price for single-family homes in the area has seen a constant increase. As of July 2024, the median sale price stands at $428,500 in 2024, which represents a 4.2% year-over-year rise.
On a national level, single-family home prices have also experienced significant appreciation. According to the latest data, the national median sale price for single-family homes reached $420,000 in July 2024, marking a 6% increase from July 2023. This steady appreciation reflects the ongoing demand for housing across the country.
Several factors contribute to this trend, including low housing inventory, increased demand from millennials entering the housing market, and a strong economy. As a result, homeowners nationwide are seeing their property values rise, providing an excellent opportunity for those looking to invest in real estate.
One of the critical factors influencing the real estate market is the number of new listings coming on the market. In July 2024, we saw a slight uptick in new listings nationwide with an approximately 6% increase from July 2023 in new listings.
On the Main Line, the inventory of new listings has also seen a modest rise. This increase in inventory provides more options for buyers and can help balance the market. If you've been waiting for the right time to buy, the increased inventory could mean more choices and potentially better negotiating power.
Key takeaways
As we wrap up our July 2024 market highlights, here are the key takeaways:
Rising Prices: Single-family home prices on the Main Line have increased, reflecting strong demand and limited inventory.
National Trends: Nationally, single-family home prices continue to appreciate, driven by various economic factors.
Favorable Mortgage Rates: Mortgage interest rates remain historically low, making home financing affordable.
Inflation Impact: Inflation is on the rise, but real estate remains a valuable hedge against it, potentially increasing property values.
Increased Inventory: A slight increase in new listings provides more options for buyers, potentially balancing the market.
Whether you're looking to buy, sell, or invest in real estate, staying informed about market trends is crucial. The Main Line continues to be a desirable location with a thriving real estate market. If you have any questions or need assistance with your real estate journey, don't hesitate to reach out to me. I’m here to help you navigate the market and achieve your real estate goals.