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.
The median condo/co-op sales price hit a new all-time high in April.
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.
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.
New listings coming on market in April hit the highest monthly number since mid-2022, and is poised to increase further in May/June.
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.
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.
The stronger the demand, the quicker listings sell: The speed of sale has been accelerating as the market moves deeper into spring.
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.
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).
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.
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.)
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.
