US Real Estate Insights - February 2024

US Real Estate Insights - February 2024

Compass National Real Estate Insights, February 2024, over a modern kitchen with a white island and wooden stools.
Real estate report highlights on home prices, sales, listings, cash purchases, and interest rates.
Interest rates are well below those seen late last year, but have
started ticking up in mid-February.
Chart of weekly 30-year mortgage rates, peaking near 7.8% in October 2023 and ending at 6.9% in February 2024.
Through February 22nd, stock markets have continued to rebound dramatically, deeply impacting household wealth - especially among more affluent buyers.
S&P 500 index chart from 2014 to February 2024, with green bars and annotations for 2020 and 2023.
Having plunged from its peak in mid-2022, the inflation rate has not dropped as quickly as expected in recent months, a big factor in mortgage interest rates.
Chart of monthly CPI and core CPI inflation from 2021 to January 2024; overall inflation peaks in 2022, then declines.
As a percentage of total sales, the share of transactions being completed
by buyers paying all cash has continued to climb.
Bar chart of U.S. all-cash home buyers, 2015–2024, with January 2024 reaching nearly 32%.
Median home sales prices rise and fall to seasonal supply and demand dynamics, and January prices mostly reflect the slow December market. Still, U.S. house and condo/co-op prices were up 5% & 5.7% respectively year-over-year.
Bar chart of U.S. single-family home sale prices, January 2019–January 2024, with seasonal peaks and a 5% annual increase.
Bar chart of U.S. median condo and co-op prices, January 2019–January 2024; January 2024 reached $339,400, up 5.7% year over year.
National house-price appreciation rates over various periods since 1990.
Infographic comparing national home price appreciation since 2023, 2020, 2015, 2010, 2000, and 1990.
Home sales by price segment: Higher-price segments have recently seen
by far the largest year-over-year increases in sales.
Infographic of January 2024 national home sales by price segment, led by the $250,000–$500,000 range at 44%.
Median house prices in selected U.S. metro areas. "Metro areas" typically
consist of large, multi-county regions.
Table comparing 2023 median home sale prices across U.S. metro areas; Seattle-Tacoma-Bellevue is listed at $735,000.
And a look at the approximate income required to buy a median-priced house in various U.S. metro areas, based on a 20% downpayment.
Chart of qualifying income to buy a median-priced house across U.S. metro areas, with Seattle-Tacoma at $195,883.
As the new year's market wakes up, the number of new listings is spiking,
but, so far in 2024, not enough to meet the acceleration in buyer demand. Since mid-2022, listing activity has plummeted due to the mortgage lock-in effect, but many analysts predict higher listing volumes this year.
Chart of seasonal U.S. new listings, with January 2024 activity up 25% from December and 3% year over year.
Months-Supply-of-Inventory measures supply as compared to demand: The lower the MSI, the more heated and competitive the market. During the pandemic boom, soaring demand dropped MSI to historic lows; since mid-2022, the plunge in listings has been the main factor in keeping MSI so low by historical standards.
Chart of U.S. housing inventory supply from 2000 to 2024, highlighting the 2008–2009 peak and pandemic-era low.
January sales volume reflects the very slow market of December, but moving into spring, the monthly number of sales should begin rising quickly. Click on the image below for our overview report on market seasonality.
Line chart of U.S. monthly home sales, January 2020–January 2024, with summer peaks and winter lows.
Strong demand vs. an inadequate supply of homes for sale, plus higher
interest rates, have severely impacted housing affordability.
U.S. housing affordability chart from 1989 to 2023, with a green trend line and major market events labeled.

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