MARKET UPDATE – August 2024
Published On: August 13, 2024 Posted by: Jeremy Peterson
The summer selling season is coming to a close this year and its time to take a look at what has happened since our last update.
PRICE ACTION
Despite the pervasively high interest rate environment, house prices have continued to lurch upwards since their 2022 slump. This summer saw prices climb to near their peaks from early 2022.
However, when we adjust house prices for inflation, house prices haven’t surged nearly as much. While modestly climbing, overall values remain about where they were last summer.
So, it is probably no surprise that annualized price growth is positive but staying between 0%-5% right now. This figure is well below the trend since 2012.
And just for fun, let’s take a look at money supply in the market. Does this chart look like a cousin to the inflation adjusted house price chart? Coincidence? We think not!
DAYS ON MARKET
The time that it takes to sell a home is elevated from recent years prior but…
…our average sell times are still much lower than the market has experienced in the past. This can be attributed to the supply shortage that pervades the market.
SALES VOLUME
After three years of massive sales declines, it appears the market is making some last minute minor adjustments before we enter the next chapter in market history.
AFFORDABILITY
Inflation adjusted mortgage payments are still crazy. The market is divided between two groups of people – those who bought homes before 2022 and those who bought homes after. The economic incentives and decision trees driving market behavior for each group are completely different.
And finally, the wizard behind the curtain directing the show is interest rates. Rates are at 6.55% today which is a slight breeze in the hot sun. We should all get accustomed to living in the heat. Bring plenty of water.
If you are looking for a professional agent to help you navigate this interesting real estate market, give Jeremy Peterson a call at 801-390-1480.
