May 2024 Compass National Real Estate Insights

May 2024 Compass National Real Estate Insights

Compass National Real Estate Insights, May 2024

Compass May 2024 real estate insights: home prices, listings, sales, buyer activity, and economic indicators.

The U.S. median house sales price increased again in April. On current trends, it will soon approach, and perhaps rise above, the peak hit in June 2022.

Chart of U.S. median single-family home prices, 1990–2024, showing a sharp rise after the pandemic.

The median condo/co-op sales price hit a new all-time high in April.

Chart of U.S. median condo and co-op prices, rising to a record high in April 2024.

 All 4 national regions have all seen substantial appreciation rates over the past 4 years, running much higher than the inflation rate during the period.Infographic comparing four-year U.S. home price appreciation by region, led by the South at 47%.

Selected Q1 2024 metro-area median house sales prices: 93% of U.S. metros posted year-over-year price gains; 30% saw double-digit appreciation over the period.

Q1 2024 median house sale prices for selected U.S. metro areas, shown in a three-column table.

New listings coming on market in April hit the highest monthly number since mid-2022, and is poised to increase further in May/June.

Chart of national new listings, showing seasonal peaks in May or June and a December low.

The inventory of active listings also jumped to its highest count since 2022, though still running very low by pre-pandemic norms. Inventory levels are most affected by the number of new listings and how quickly buyers snap them up.

Chart of U.S. active home listings from 2017 to April 2024, highlighting the pandemic boom and 16% annual increase.

More new and active listings turned into higher sales in April. Sales numbers commonly peak in June, mostly due to listings going into contract in May.

Chart of U.S. monthly home sales from 2020 to April 2024, with seasonal peaks and an April 2024 rebound.

The stronger the demand, the quicker listings sell: The speed of sale has been accelerating as the market moves deeper into spring.

Chart of U.S. median days on market from 2011 to April 2024, with annotations on seasonality and market trends.

Prices, listings, and sales have been increasing - but so have the number of price reductions. Not every listing sells quickly: Correct pricing, preparation, and marketing remain critical. Buyers should pay attention to price reductions: They can offer big opportunities to negotiate significantly better deals.

Infographic chart of U.S. active listing price reductions from 2018 to April 2024, with seasonal peaks and market-event annotations.

The number of new-construction houses on the market just hit its highest point since 2008. These are generally clustered in regions with high population growth and lower obstacles to construction (such as cost and permitting).

Chart of U.S. new-construction home listings from 2000 to March 2024, with gold bars and a recent rise.

All-cash sales have been on an upward trend since 2020. According to data provider CoreLogic, investors - a large percentage of whom typically pay all-cash - completed 28% of single-family-home purchases in Q4 2023. A good number of affluent owner-occupier buyers are also doing so.

Chart showing the U.S. share of all-cash buyers rising to about 31% by April 2024.

 Interest rates continue to be volatile. In the last 6 weeks, rates spiked up and then plunged back down - mostly due to attempts to predict what the Fed will do. (Since August, it has continued to make no changes to its benchmark rate.)

Chart of 30-year fixed mortgage rates, peaking near 8% in October 2023 before rising again in spring 2024.

 As of May 21st, the S&P and Nasdaq hit new highs. Financial markets have an enormous impact on household wealth and consumer confidence - especially for the affluent households who play such a large role in housing markets.

Line chart shows Nasdaq up about 62% and S&P 500 up about 39% since January 2023.

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