Welcome to today’s real estate news roundup! In the ever-evolving housing market, there are several key trends and developments to keep an eye on. Home prices remain historically high, and with tight inventory, both sellers and buyers are feeling the pressure. The median sale price for existing homes in the U.S. reached a record high of $393,500 in March 2024. Mortgage rates have held steady, but experts predict continued challenges for homebuyers. Additionally, changes to real estate commissions are on the horizon, potentially shifting the cost burden to buyers. Meanwhile, Washington County saw an increase in median home prices, and Habitat for Humanity made a significant impact by building six homes in a single day. Lastly, zoning laws in Oklahoma contribute to the affordable housing crisis, emphasizing the need for reforms to create a more accessible landscape. Explore these stories to gain valuable insights into the current state of the housing market.
Housing Market 2024 Predictions | Bankrate
With home prices historically high, inventory still very tight and big commission changes coming this summer, many prospective sellers and hopeful buyers are feeling nervous about today’s housing market. The median sale price for an existing home in the U.S. was $393,500 as of March 2024, the highest March median on record with the National Association of Realtors (NAR). Home prices, mortgage rates, inventory levels, and commission structures will all shape housing affordability in the coming year.
Rates roughly doubled back in 2022, thanks in part to the Federal Reserve’s war on inflation, and they have stayed high since. While the Fed does not directly set mortgage rates, mortgage lenders take cues from them, and mortgage rates climbed in tandem with the Fed’s long string of rate hikes. The Fed has held rates steady so far in 2024, and has signaled that rate cuts, rather than hikes, could be coming before the year is out. But many predict that homebuyers will still be feeling the squeeze throughout the year.
Key housing market stats: The median home-sale price as of March 2024 was $393,500, up 4.8 percent from one year ago, according to NAR data. The nation had a 3.2-month supply of housing inventory as of March, per NAR, which is low enough to be considered a seller’s market. Home-price growth increased in February 2024 by 6.4 percent, according to S&P CoreLogic’s latest Case-Shiller Index. Bankrate’s latest national survey of large lenders shows the average rate on a 30-year mortgage was 7.23 percent as of May 8, 2024. The U.S. inflation rate as of March 2024 was 3.5 percent.
One thing to keep an eye on this summer: Thanks to the settlement of a major federal lawsuit, the way real estate commissions work in the U.S. is set to change in August. The longstanding structure has been for home sellers to pay both their own agent’s commission and their buyer’s, often with that cost “baked into” the home’s asking price. But going forward, buyers may have to cover their own agent’s commission fee.
While home prices rose or held firm in 2023, the volume of home sales softened considerably. That has continued so far in 2024: Existing-home sales in March were down both month-over-month and year-over-year. However, these trends may pivot if mortgage rates continue to dip.
Housing supply remains very low. The overall number of existing homes on the market for sale as of March sat at 1.11 million units, up from both the previous month and the previous year. Even so, that represents only a 3.2-month supply, far short of the 5 to 6 months usually needed for a balanced market.
In today’s market, tight inventory continues to give sellers the upper hand. There are more buyers than there are homes available, so each home that comes on the market becomes more of a hot commodity than it might if there were more options to choose from. Without a significant uptick in inventory, the seller’s market seems unlikely to change this year.
The combination of high mortgage rates, steep home prices, and low inventory levels are lining up to make the 2024 housing market a challenging one for both buyers and sellers. But rates have cooled a bit — if that continues throughout the year, as some experts predict, then market activity should heat up in response.
Washington County home listings asked for more money in April: See the current median price here
The median home in Washington County listed for $226,875 in April, up 0.8% from the previous month’s $225,000. Compared to April 2023, the median home list price decreased 5.5%. Listings in Washington County moved briskly, with a median of 36 days on the market compared to the national median of 47 days. Around 78 new listings were added in April, a 2.6% increase from the previous year.
In Oklahoma, median home prices were $300,000, and the median Oklahoma home listed for sale had 1,889 square feet. Throughout the United States, the median home price was $429,950, and the median American home for sale was listed at 1,840 square feet.
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BLITZ BUILD: Habitat for Humanity builds 6 homes in single day
Habitat for Humanity held its 2024 Blitz Build on May 11, bringing local organizations together to build six new homes in one neighborhood in just one day. The goal of this event is to create affordable homeownership for six new families. Erika Garcia’s family was one of the lucky six who got to watch their future home be built right before their eyes. Find out if you qualify for aid from Habitat for Humanity.
Zoned out: How Okla zoning laws add to the housing crisis
The American dream of owning a home is out of reach for many of Oklahoma’s lowest-income families. The state needs more than 77,000 affordable units to meet the demand of low and extremely low-income residents. Zoning policies, particularly single-family zoning, are significant contributors to the problem, hindering the state’s ability to close the affordable housing gap. Easing restrictions on building, reconsidering single-family zoning, and implementing zoning reforms are crucial steps in creating a more accessible landscape for potential home buyers, renters, and developers. Find out more about how zoning laws contribute to the housing crisis in Oklahoma.