The real estate market in the USA has experienced significant fluctuations in home sales and prices, especially in recent years. As of mid-2024, the market shows signs of stabilization after a period of rapid price increases and heightened demand driven by historically low mortgage rates and the COVID-19 pandemic. According to the National Association of Realtors (NAR), existing-home sales in May 2024 were at a seasonally adjusted annual rate of 5.8 million, reflecting a modest decline from the previous month but a 1.5% increase compared to the same period last year. This slight dip can be attributed to the recent uptick in mortgage rates, which have risen to an average of 6.25% for a 30-year fixed-rate mortgage, impacting buyers' purchasing power.
Despite the cooling in sales volume, home prices continue to rise, albeit at a slower pace. The median existing-home price for all housing types in May 2024 was $386,000, up 3.5% from May 2023. The persistent shortage of available homes for sale, combined with strong demand, particularly in suburban and rural areas, has kept prices elevated. Regions such as the Midwest and South have seen the most substantial price increases, with median prices rising by 5% and 4.7%, respectively, year-over-year. As the market adjusts to changing economic conditions, experts predict a gradual normalization in both sales and pricing, offering a more balanced environment for buyers and sellers alike.
Source : Realtor.com
