Housing Market Update: May 2024 - A Shifting Landscape
The National Association of Realtors (NAR) just released its May 2024 report, painting a picture of a housing market in transition. Here's the breakdown:
Nationally, the market is experiencing a slowdown in sales. This dip is concentrated in the South, while the Midwest bucks the trend with a slight annual increase. However, a glimmer of hope emerges for buyers – total housing inventory is finally on the rise, offering a wider selection. This increase coincides with predictions from NAR's Chief Economist who believes it will lead to price moderation in the long run. The concern, however, is affordability. Soaring prices threaten to push first-time buyers out of the market despite their continued presence (31% of sales in May). Mortgage rates, though offering some relief compared to the previous week, remain higher than a year ago, further impacting affordability.
Zooming in Seattle: This market is particularly competitive, reflecting the national trend of high demand and low inventory. This dynamic has pushed home prices even higher, further impacted by rising interest rates that have slowed sales activity. Interestingly, some buyers are entering the market now to lock in a lower rate before they climb even further. Experts predict continued price increases in the coming months, making the Seattle market's future somewhat uncertain.
The takeaway? The US housing market is in flux. While sales cool down and affordability remains a concern, rising inventory offers a glimmer of hope for buyers. Prices, however, continue their upward climb, impacting affordability. As the market evolves, keeping an eye on regional variations and economic factors will be crucial for informed decisions.
The US housing market is a story of two trends: cooling sales and rising prices. While this national picture provides context, the true story unfolds at the local level. The Pacific Northwest is a prime example, with markets varying greatly between cities and even neighborhoods. Some areas might see a shift towards buyer advantage, while others could remain fiercely competitive.
To navigate this complex landscape, thorough research on your specific location is crucial for both buyers and sellers. If you're considering entering the Greater Seattle-area housing market, the Hive Group team of real estate professionals can be a valuable resource. We offer expertise and guidance tailored to your unique needs, helping you make informed decisions. Contact us today.
Sources: nar.realtor – FastExpert – Zillow