09/12/2024 | Press release | Distributed by Public on 09/12/2024 03:03
Sep 12, 2024
Competition among buyers is likely to extend into the fall thanks to improved affordability
SEATTLE, Sept. 12, 2024/PRNewswire/ -- Lower mortgage rates and rising inventory are giving home buyers a window of opportunity at an unusual time of year, according to the latest market report1 from Zillow®. Affordability has improved substantially for home buyers, and competition among them could extend into the fall instead of fading away as is typical at this time of year.
"Late summer may be an opportunity for buyers who have been waiting in the wings for a monthly mortgage payment they can qualify for," said Skylar Olsen, Zillow chief economist. "Buyers have more options to choose from for two reasons. For one, it's easier to qualify for more of the homes on the market now that mortgage rates are a bit lower. Beyond that, more inventory is becoming available - enough to improve buyer negotiating power. Attractive properties in hot markets are still selling quickly, but some metros - or neighborhoods within them - have flipped further in favor of buyers."
Mortgage rate declines have made buying a home roughly affordable again at the national level (meaning monthly payments generally take less than one-third of median household income), assuming a buyer puts 20% down and before taxes and insurance are accounted for. Nationwide, the monthly payment on a typical home purchase has fallen by more than $100since a peak in May. That drop is more than $300a month in the ultraexpensive San Franciscometro area.
Beyond lower costs, a number of metrics are moving in buyers' favor. The Zillow market heat index shifted from being in favor of sellers into neutral territory in July. For the past two years, sellers held their edge nationally until October.
Homes are taking longer to sell than in recent history, but shorter than in pre-pandemic times. Homes that sold in August took 20 days to go pending, two more than in July, but about six days faster than at this time of year before the pandemic. And while inventory growth has slowed, nearly 1.18 million homes are on the market, more than any month since September 2020.
Lower rates could stall or slow a normal autumn cooldown, because right now buyers are more likely to be motivated by lower rates than sellers are.
Some signals are already pointing to an altered trajectory in the housing market. The share of listings on Zillow with a price cut ticked down from July to August, reversing an upward trend of rising every month since March. Just under 26% of homes on the market had a price cut in August. That's relatively high for this time of year, but not a record, as seen in recent months.
Opportunities for buyers
Opportunities for sellers
Metropolitan |
August |
Market |
Typical |
Typical |
Median |
Share |
Inventory |
United States |
$362,143 |
neutral |
$1,827 |
-3.4 % |
20 |
25.9 % |
-30.8 % |
New York, NY |
$676,836 |
strong seller |
$3,399 |
-3.0 % |
27 |
13.3 % |
-54.4 % |
Los Angeles, CA |
$956,784 |
seller |
$4,782 |
-3.0 % |
18 |
20.9 % |
-30.6 % |
Chicago, IL |
$325,651 |
seller |
$1,640 |
-3.2 % |
12 |
26.0 % |
-50.6 % |
Dallas, TX |
$372,980 |
neutral |
$1,884 |
-3.7 % |
31 |
34.8 % |
-8.1 % |
Houston, TX |
$307,366 |
neutral |
$1,553 |
-3.6 % |
34 |
29.9 % |
-12.6 % |
Washington, DC |
$567,618 |
strong seller |
$2,860 |
-3.4 % |
11 |
23.0 % |
-44.4 % |
Philadelphia, PA |
$366,585 |
seller |
$1,846 |
-3.3 % |
11 |
22.9 % |
-48.0 % |
Miami, FL |
$489,781 |
buyer |
$2,473 |
-3.5 % |
45 |
22.0 % |
-11.6 % |
Atlanta, GA |
$383,408 |
neutral |
$1,936 |
-3.6 % |
29 |
32.1 % |
-14.8 % |
Boston, MA |
$699,791 |
strong seller |
$3,520 |
-3.3 % |
11 |
19.3 % |
-44.4 % |
Phoenix, AZ |
$456,508 |
neutral |
$2,311 |
-3.8 % |
30 |
33.3 % |
-20.5 % |
San Francisco, CA |
$1,149,479 |
strong seller |
$5,803 |
-3.6 % |
16 |
18.9 % |
-4.1 % |
Riverside, CA |
$583,804 |
seller |
$2,943 |
-3.3 % |
23 |
23.7 % |
-32.9 % |
Detroit, MI |
$254,757 |
seller |
$1,286 |
-3.5 % |
11 |
25.8 % |
-38.1 % |
Seattle, WA |
$740,004 |
seller |
$3,718 |
-3.4 % |
14 |
27.5 % |
-26.3 % |
Minneapolis, MN |
$375,730 |
strong seller |
$1,894 |
-3.5 % |
21 |
26.9 % |
-35.8 % |
San Diego, CA |
$943,960 |
seller |
$4,767 |
-3.6 % |
19 |
27.0 % |
-36.1 % |
Tampa, FL |
$378,042 |
buyer |
$1,914 |
-3.8 % |
37 |
35.6 % |
9.5 % |
Denver, CO |
$582,046 |
neutral |
$2,931 |
-3.5 % |
23 |
35.7 % |
-2.6 % |
Baltimore, MD |
$386,072 |
seller |
$1,949 |
-3.6 % |
9 |
25.5 % |
-49.2 % |
St. Louis, MO |
$252,843 |
seller |
$1,273 |
-3.3 % |
7 |
24.4 % |
-47.6 % |
Orlando, FL |
$397,206 |
buyer |
$2,008 |
-3.6 % |
32 |
31.2 % |
9.7 % |
Charlotte, NC |
$381,083 |
neutral |
$1,926 |
-3.6 % |
25 |
27.9 % |
-3.7 % |
San Antonio, TX |
$284,322 |
neutral |
$1,439 |
-3.8 % |
42 |
32.3 % |
12.6 % |
Portland, OR |
$547,350 |
seller |
$2,758 |
-3.5 % |
21 |
29.2 % |
-24.4 % |
Sacramento, CA |
$579,242 |
seller |
$2,924 |
-3.6 % |
17 |
28.8 % |
-34.8 % |
Pittsburgh, PA |
$215,178 |
neutral |
$1,092 |
-3.7 % |
15 |
29.3 % |
-40.6 % |
Cincinnati, OH |
$286,903 |
seller |
$1,446 |
-3.3 % |
7 |
29.8 % |
-37.7 % |
Austin, TX |
$453,837 |
buyer |
$2,296 |
-3.9 % |
58 |
30.2 % |
30.5 % |
Las Vegas, NV |
$433,110 |
seller |
$2,179 |
-3.1 % |
21 |
27.6 % |
-27.3 % |
Kansas City, MO |
$303,802 |
seller |
$1,529 |
-3.4 % |
10 |
30.8 % |
-44.0 % |
Columbus, OH |
$315,751 |
seller |
$1,590 |
-3.4 % |
8 |
31.9 % |
-29.7 % |
Indianapolis, IN |
$280,720 |
neutral |
$1,417 |
-3.5 % |
13 |
33.7 % |
-20.6 % |
Cleveland, OH |
$232,456 |
strong seller |
$1,171 |
-3.1 % |
8 |
24.4 % |
-56.8 % |
San Jose, CA |
$1,588,006 |
strong seller |
$7,903 |
-2.7 % |
13 |
18.5 % |
-26.0 % |
Nashville, TN |
$440,163 |
neutral |
$2,224 |
-3.6 % |
27 |
34.5 % |
-10.5 % |
Virginia Beach, VA |
$353,185 |
seller |
$1,777 |
-3.3 % |
25 |
25.2 % |
-47.8 % |
Providence, RI |
$490,822 |
strong seller |
$2,463 |
-2.9 % |
10 |
22.2 % |
-61.4 % |
Jacksonville, FL |
$358,068 |
buyer |
$1,812 |
-3.7 % |
49 |
32.5 % |
4.9 % |
Milwaukee, WI |
$349,218 |
seller |
$1,759 |
-3.3 % |
19 |
19.4 % |
-29.7 % |
Oklahoma City, OK |
$234,943 |
neutral |
$1,185 |
-3.5 % |
21 |
30.6 % |
-14.8 % |
Raleigh, NC |
$444,473 |
seller |
$2,246 |
-3.6 % |
20 |
34.5 % |
-19.2 % |
Memphis, TN |
$238,246 |
buyer |
$1,209 |
-3.8 % |
34 |
28.5 % |
0.9 % |
Richmond, VA |
$371,454 |
strong seller |
$1,869 |
-3.3 % |
10 |
26.1 % |
-44.7 % |
Louisville, KY |
$259,165 |
neutral |
$1,305 |
-3.3 % |
10 |
29.2 % |
-31.3 % |
New Orleans, LA |
$237,679 |
buyer |
$1,206 |
-4.0 % |
42 |
24.9 % |
42.1 % |
Salt Lake City, UT |
$541,348 |
seller |
$2,731 |
-3.6 % |
19 |
34.1 % |
-21.0 % |
Hartford, CT |
$366,985 |
strong seller |
$1,846 |
-3.1 % |
7 |
18.4 % |
-68.0 % |
Buffalo, NY |
$268,628 |
strong seller |
$1,354 |
-3.2 % |
11 |
20.3 % |
-44.1 % |
Birmingham, AL |
$250,032 |
neutral |
$1,265 |
-3.7 % |
24 |
25.7 % |
-26.2 % |
*Table ordered by market size |
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**According to Zillow's market heat index |
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*** Mortgage payment, excluding taxes and insurance, for a house valued at the Zillow Home Value Index for that location, bought at the average mortgage rate for August (6.5%), using a 20% down payment. |
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1 |
The Zillow® Market Report is a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Research. For more information, visit www.zillow.com/research. |
About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.
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SOURCE Zillow
For further information: Mark Stayton, Zillow, [email protected]