On The Market The Housing Market is Changing (Deals Are Coming in Winter)
Nov 28, 2024
Discounted real estate deals may be on the horizon as the housing market begins to thaw this winter. Home prices remain high despite a significant drop in sales, currently 20% below the average and 50% from recent peaks. Factors like affordability struggles and locked-in homeowners keep the market stagnant, but sellers may be more willing to lower prices soon. Additionally, the potential rise in mortgage rates and shifts in rental trends present intriguing investment opportunities for savvy investors.
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Home Prices at All-Time High
- National median home price hits all-time high at $429,000, up 4% year-over-year.
- This 4% growth exceeds inflation and is considered above average, but the trend is slowing down.
Sluggish Home Sales
- Home sales volume is significantly below average, at 3.86 million compared to the 25-year average of 5.25 million.
- This represents a 20% drop from average and a 50% drop from the peak during the COVID pandemic.
Affordability vs. Supply
- Low affordability, due to high home prices and mortgage rates, is the primary reason for decreased demand.
- Despite lower demand, home prices continue to rise because fewer homeowners are willing to sell.