U.S. existing-home sales increased by 3.4% in October 2024, reaching a seasonally adjusted annualized rate of 3.96 million units, the highest level since February. This rise followed a dip in mortgage rates to a two-year low in September, which has been a significant factor in boosting housing demand. Lawrence Yun, chief economist at the National Association of Realtors (NAR), noted that job gains and overall economic growth are expected to further stimulate the housing market [d50c26d2].
The median sale price for homes rose by 4% year-over-year to $407,200, marking the highest median price recorded for any October. Despite the increase in prices, the inventory of homes available for sale rose by 0.7% to 1.37 million, although this figure remains below pre-pandemic levels. Notably, 59% of homes sold were on the market for less than a month, indicating a competitive market environment [d50c26d2].
In September 2024, U.S. home prices rose by 3.4% year-over-year, reflecting a broader economic uncertainty, with projections indicating that growth may further decelerate to 2.3% by September 2025. Miami experienced the highest gain among metro areas at 6.8%, while Rhode Island reported the highest state growth at 9% [ec8d95fc].
Despite the positive trends in home sales, existing home sales had previously fallen by 1% in September 2024, reaching a seasonally adjusted annual rate of 3.84 million units, the weakest pace since October 2010. The median home price rose by 3% year-over-year to $404,500, with first-time homebuyers representing only 26% of sales, matching an all-time low [d9c60e35].
The housing market dynamics remain complex, as new single-family home sales had already decreased by 4.7% in August 2024, reaching an annualized rate of 716,000. The median sales price for new homes also fell by 4.6% to $420,600, indicating a trend of declining prices over seven consecutive months [1547d379].
Mortgage rates fell to a two-year low of 6.13% in September but subsequently rose to 6.73%, impacting buyer sentiment. Economists project mortgage rates to average 6.2% in Q4 2024 and decline further to 5.7% in Q4 2025 [d9c60e35].
In the UK, house prices rose by 4.3% in August 2024 compared to the same month last year, with the average home value now at £292,505, driven by growing confidence among homebuyers [a9412b02].
Despite the positive trends in the UK housing market, the U.S. market remains challenged. Existing home sales fell 2.5% in August 2024, with the National Association of Realtors reporting a median sales price increase of 3.1% to $416,700, even as sales decreased by 5.7% compared to the previous year [2dbfd62f].
The current housing market is described by Jerome Powell as 'frozen' due to the lock-in effect of low mortgage rates, which has made many homeowners reluctant to sell [2dbfd62f]. Recent data from Realtor.com indicates that the median listing price in the U.S. fell by 0.3% year-over-year, while active inventory rose significantly, suggesting a more favorable environment for buyers [7796ff99].
In Minnesota, closed sales dropped by 8% in July 2024, with new listings surging over 16%. The median sales price in Minnesota rose significantly by 15% to $292,400, reflecting regional variations in the housing market [d3e9972b].
Adding to the evolving narrative, a recent report from the National Association of Realtors revealed that the average age of homebuyers in the U.S. has reached a record high of 56 years as of November 2024. This marks a significant increase from the average age of 49 in 2023, with the median age of first-time buyers rising from 35 to 38 years. Typical repeat buyers are now aged 61, up from 58 years [ec7f5b63].
As the U.S. housing market grapples with these challenges, the overall economic landscape remains complex, with high mortgage rates and constrained inventory continuing to affect buyer sentiment and market dynamics. NAR chief economist Lawrence Yun forecasts existing-home sales to rise to 4.47 million in 2025 and over five million in 2026, indicating potential recovery on the horizon [c2df47a9].