U.S. Home Prices Hit New All-Time High

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U.S. Home Prices Hit New All-Time High, Pushing Pending Sales Down 5% link

• Median sale prices reached $397,954, marking a 4.9% increase year-over-year and setting a new record high. This is the biggest price increase since March.

• Pending home sales fell by 4.6%, the largest drop in four months, signaling a decrease in buyer activity due to high prices.

• Mortgage rates have declined for the fourth consecutive week, with the median monthly payment at $2,749, which is $88 below the April peak. This slight decline may offer some relief to potential buyers.

Weekly Housing Trends View—Data for Week Ending June 29, 2024 link

• Home prices grew 0.5% year over year, ending four weeks of flat price growth. This increase is despite the ongoing rise in affordable inventory, indicating that similar-sized homes are more expensive than a year ago.

• New listings increased by 10.8% from last year, marking the highest annual rise since late April. Falling mortgage rates may be encouraging more homeowners to list their homes for sale.

• Active inventory is up 38.1% compared to last year, the largest annual increase since April 2023. Despite this, there are still over 30% fewer homes for sale than before the pandemic, maintaining upward pressure on prices.

Zumper National Rent Report link

• The national rent index saw one-bedroom rents increase by 1.5% in June to $1,526, and two-bedroom rents by 1.9% to $1,900. This indicates a steady rise in rental prices across the country.

• Florida experienced minimal declines in rent prices despite a significant influx of new rental units, reflecting strong housing demand. Cities like Orlando, Tampa, and Miami saw this trend.

• All four major cities in New York state had double-digit rent increases annually. New York City's rental market is especially tight, with a historic low vacancy rate of 1.4%.

• “We may have finally returned to the first normal renting season since 2019…Following a soft winter, last month our national index recorded the highest monthly gains since the Fall of 2022 and rent growth has begun to accelerate into summer” Said Zumper CEO Anthemos Georgiades.

Luxury homes are sprouting in the single-family rental sector link

• Luxury rentals now make up a significant portion of single-family rentals, with cities in California leading this trend. Irvine, for example, has 73.6% of its single-family rentals in the luxury space.

• The build-to-rent sector has seen substantial growth, with the number of completed homes rising from 4,056 in 2014 to 27,495 in 2023. This 75% increase indicates a strong demand for rental properties.

• Higher-income households are driving this trend, as the number of renters making over $150,000 has doubled between 2017 and 2022. Meanwhile, households earning less than $50,000 are being priced out, declining by 17%.

Mild Supply Headwinds in Lower Midwest Result in Steadier Performance link

• Inventory growth in the Lower Midwest, including Kansas City and St. Louis, was just under 2% year-over-year, compared to the national average of 2.5%. This steady growth helped maintain stable market conditions.

• Rent growth in the region was a solid 2.7% for the year-ending first quarter, significantly higher than the national average of 0.2%. This indicates stronger rental market performance in the Lower Midwest.

• The inventory growth gap between the Lower Midwest and the national average is expected to narrow in the coming year. Rent growth in the region is also projected to align more closely with national trends.

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Chill $139 Million for this “Modest Home”

Link to the listing

That's all, folks.

Cheers,

Vidit

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