Real Estate Market Update for September 2024

Navigating the Real Estate Market in an Election Year: Trends and Insights

As we dive deeper into the election year, the real estate market presents a mix of stability and uncertainty, which is typical during such periods. The recent data for August 2024 compared to the same month in 2023 gives us valuable insights into how the market is shaping up during this pivotal time.

Market Stability Amidst Political Uncertainty

Despite the ongoing political campaigns and the potential for economic shifts, the median home price has shown remarkable stability. At $423,000, it has only slightly decreased from the $425,000 sustained over the previous four months. This stability in pricing, despite other fluctuations in the market, suggests a steady demand and a resilient housing sector.

A Look at Days on Market and Inventory Levels

However, not all indicators have remained stable. The average days on market have increased by 31.4%, now sitting at 38 days. This is a significant shift, indicating that homes are taking longer to sell—a trend that could be attributed to buyers' wait-and-see approach during the election cycle.

Similarly, the months of inventory have risen by 28.6%, now at 2.7 months. This increase reflects a slower pace of sales relative to new listings, suggesting a shift towards a more balanced or potentially buyer-favorable market.

Listing and Sales Dynamics

The market dynamics are also reflected in the number of new listings and sales activities. August saw 1,912 new listings, a decrease of 5.1% from last year, pointing to a cautious approach from sellers. On the other hand, pending home sales have increased by 8.3%, with 1,552 properties going under contract, indicating that while fewer new listings are coming up, the homes on the market are attracting interest.

However, the closed homes in August were down 8.5%, totaling 1,477. This marks the lowest number of August closings since 2015, underscoring the cautious atmosphere amongst both buyers and sellers.

What does this all mean?

The current real estate market, influenced by the election year, shows a complex interplay of stability in prices with shifts in other key metrics like days on market and inventory levels. As we move closer to the election, these trends may continue or change as buyers and sellers react to the broader economic and political climate. For now, both buyers and sellers should remain informed and agile, ready to adapt to the evolving market conditions.