In September 2024, RE/MAX Holdings, Inc. released its National Housing Report, revealing a 13.3% slowdown in home sales compared to August, along with a minor 1.4% drop in the median sales price, settling at $429,000. Historically, a decline during this period is typical, as evidenced by the 13.8% and 9.7% decreases in 2023 and 2022, respectively. Despite this seasonal cool down, sales were still 3.1% lower than the previous September, contrastingly with a 4.6% increase in the median home price over the same period. "Amidst the slight sales decline, the rise in home inventory is promising, providing buyers with more choices," stated Amy Lessinger, President of RE/MAX.
She highlights the stability in sales prices and notes that buyers are fulfilling 99% of asking prices, underscoring the market's resiliency. With the potential for lower rates, activity could surge as we close out 2024 and move into 2025. Turning to the hottest markets, Hartford, Connecticut saw a remarkable year-over-year increase in median sales prices, climbing 11.9%. Following closely behind were Cleveland, Ohio with a 9.1% increase, and Providence, Rhode Island up by 8.9%.
On the new listings front, Bozeman, Montana experienced a significant rise of 35.9% from the previous year, while Phoenix, Arizona recorded a 32.8% increase, and Las Vegas, Nevada saw listings jump by 27.5%. Conversely, cooler markets such as Coeur d’Alene, Idaho witnessed a 4.7% drop in median sales prices, San Antonio, Texas saw a decline of 3.1%, and Tampa, Florida decreased by 2.6%. Tampa also faced a 12.3% reduction in new listings and San Antonio declined by 9.1% from the previous year.
From an investment perspective, despite an uptick in housing inventory, the market remains competitive with buyers generally paying 99% of asking prices. Real Estate ETFs offer an alternative route for market involvement, typically tracking Real Estate Investment Trusts (REITs). Over the past six months, the Vanguard Real Estate ETF has realized a gain of 20%, while the Real Estate Select Sector SPDR Fund has appreciated nearly 22% since April 2024. In related market movements, at the time of reporting, RE/MAX shares experienced a 3.03% increase priced at $12.23, Vanguard Real Estate shares rose by 1.92% to $97.09, and Real Estate Select Sector SPDR shares edged up 1.81% to $44.52.
As the housing market continues to navigate seasonal trends and fluctuating economic conditions, these investment vehicles provide a diverse portfolio exposure while tracking broader market shifts.
