Changes to the Real Estate Market Fall 2024

An article from Realtor.com helps explain just how much the number of homes for sale has gone up this year:

“There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”

And while the number of homes on the market still isn’t quite back to where it was in the years leading up to the pandemic, this is definitely an improvement,

With more homes available for sale now, you have more options to choose from. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains:

“Though still lower than pre-pandemic, burgeoning home supply means buyers have more options . . .”

That means you have a better chance of finding a house that meets your needs. It also means the buying process doesn’t have to feel quite as rushed, because more options on the market means you’ll likely face less competition from other buyers.

While these are national numbers, it is also true on the local level in Montgomery County. In September 2024 for instance, the Chevy Chase real estate market saw a 20% increase in supply to 36 active units.  Just to show how things have changed since 2017- a 20% increase in supply gets us to 36 active units in 2024 whereas the active units in 2017 were 76.  In Chevy Chase saw a 20% increase in inventory and is still less than 50% of the 2017 inventory.

Tight inventory means that buyers have to compete more fiercely for the ones that are available. Tight inventory over the past few years has driven prices up quickly for homebuyers

But now, the increasing number of homes on the market is causing home price growth to slow down (see graph below):

In certain markets, the number of available homes has not only bounced back to normal, but has even surpassed pre-pandemic levels. In those areas, home price growth has slowed or stalled completely. As Lance Lambert, Co-Founder of ResiClub, explains:

“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”

Slower or stalled price growth could give you a better chance of finding something within your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), says:

“For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.”

But remember, inventory levels and home prices are going to vary by market and even by housing type within the same market.  

Despite these changes to the real estate market, local markets still responded locally.  For instance in 20815 (Chevy Chase), the Average Sold Price is $1,265,175, which represents a 24% increase YOY and a 5.7% increase MOM.  The median sold price for detached homes is $1,458,000 in October, up 12% from September and up 5.3% from October 2023.  The five year average is $1,382,280.

The median sold price for Condo & Coop properties for October was $650,000. This was a 38.3% increase from September and a 17.1% increase from October 2023.  In September the median sold price for condos and coops was $470,000, representing a increase of 10.6% compared to August and a decrease of 29.7% from May 2023.