Since the end of the pandemic, the US real estate market was expected to observe a decline in the prices of properties. But to the surprise of the realtors and analysts, the market witnessed an upward trajectory. The unsubstantial notion of the post-pandemic market crash was flipped with the increasing property costs in the US market.
The major factor affecting real estate prices is the low inventory and growing demand for houses. This increased prices, leading to an all-time high in June 2024. Although there had been a few fluctuations, the consistency in the upward movement displayed a positive intent of the market. It has also been observed that housing prices won’t be going down anytime soon. This exhibits itself as a sub-factor of the still-increasing demand.
The skyrocketing house prices became a point of worry for potential home buyers. Even after the mortgage rates experienced a decline, the historic rise in property prices caused turmoil amongst the buyers. If the mortgage rates would continue to go down significantly, the market could expect a rush of customers, thus creating instability in the prices. But the conditions propose that the prices aren’t going to fall within this year. There is very little inventory to cater to the growing demands in the real estate market. Buyers could wait till January for the prices to fall within an affordable range.
The National Association of Realtors (NAR) reports unfurled the median sale price for August 2024 was $416,700, which stood at $426,900 in July of the same year. The property sellers are observing fewer sales. However, this was the highest median the NAR has recorded for August.
The analysts suggested the market conditions will continue to flourish shortly. As compared to 2023, the market prices have shifted slightly upwards. However, this trend can vary according to the region. The trajectory for mortgage rates is expected to move upward for the upcoming year. This could be an additional factor that can push away the potential buyers.
The persistent issue of low inventory in the US housing market prevents the price decline. This could pose a challenge for the buyers and realtors to stabilize the real estate market. The data revealed the low national inventory for properties in 2024. The new housing boom has been threatening buyers, with the ascending mortgage rates adding to their worries. While the market conditions appear prosperous, the homeowners and buyers are constantly waiting for a crash in the housing market.
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