Yes, the real estate market in 2024 has been very slow. Home sales are projected to be at their lowest level since 1995:
Home sales
The National Association of Realtors (NAR) reported that existing home sales in the United States fell 1% in September 2024, and are down 3.5% from a year earlier. Fannie Mae’s ESR Group forecasts that total home sales in 2024 will be 4.7 million, which is a 0.3% decline from 2023.
Home turnover
Redfin reported that about 2.5% of U.S. homes changed hands in the first eight months of 2024, which is the lowest turnover rate in at least the past 30 years.
Home prices
The median price of an existing home for sale increased 3% in September 2024 compared with a year earlier to $404,500.
Days on the market
Homes are now sitting on the market an average of 28 days, up from 21 days in September 2023.
Factors contributing to the slow real estate market include:
- Affordability: Mortgage rates are at 20-year highs and prices are high. Only 11% of San Diego County households have the financial strength to qualify to buy.
- Lock-in effect: Many buyers are on the sidelines due to the lock-in effect.
- Presidential election: Some consumers are waiting to see how the outcome of the election could impact their ability to afford a home.
- Demand destruction: The spike in prices has caused demand destruction.
