U.S. Home Sales Rebound in October 2024

In October 2024, U.S. existing home sales increased 3.4% to an annualized rate of 3.96 million units. This is the first year-over-year growth since mid-2021, driven by falling mortgage rates and improved housing affordability. Understanding these trends provides valuable insights for buyers and sellers to make more informed decisions in a dynamic housing market.

First year of growth since 2021

The U.S. housing market experienced a pivotal shift in October 2024, with existing home sales rising 3.4%. This increase broke a two-year streak of declining sales, signaling renewed activity in the housing sector. The annualized rate of 3.96 million units indicates a stabilizing trend as the market recovers from recent economic fluctuations. This data comes as a relief to buyers and sellers alike who have navigated a challenging landscape over the past few years.

The impact of falling mortgage rates

One of the primary drivers behind this increase in home sales is the recent decline in mortgage rates. As interest rates fell in late summer and early fall, potential buyers who had been priced out of the market found themselves with more purchasing power. Lower borrowing costs made monthly mortgage payments more affordable, encouraging many first-time homebuyers to enter the market. Sellers, too, benefited from increased buyer interest, which helped reduce inventory levels in certain regions.

Improved housing affordability

Housing affordability also played a key role in October’s sales growth. As median home prices stabilized or even declined in some areas, more households were able to participate in the market. This trend was particularly evident in suburban and rural areas, where housing demand was fueled by remote work opportunities. Buyers sought more spacious and less expensive options outside of expensive urban centers, contributing to the increase in sales.

Regional variations in sales trends

While national trends show an overall increase, regional variations tell a more nuanced story. Southern and Midwestern states saw the most significant improvements in sales, driven by lower housing costs and population growth in these areas. Meanwhile, high-cost markets on the West Coast continued to face affordability challenges, limiting their recovery. These regional differences underscore the importance of localized market analysis for buyers and sellers making strategic decisions.

What it means for buyers and sellers

The October 20-24 data provides a roadmap for navigating the housing market in the coming months. For buyers, now may be the time to act as mortgage rates remain favorable and inventory levels slowly adjust. Sellers can take advantage of increased buyer activity and potentially receive better offers as demand increases. However, both groups should remain vigilant and monitor economic indicators such as inflation and future interest rate changes that could impact the housing market in 2025.

The 3.4% increase in existing home sales from October 20-24 represents a promising shift for the U.S. housing market. Falling mortgage rates and improving affordability have created opportunities for both buyers and sellers. As the market shows signs of recovery, staying on top of economic and regional trends will be key to making smart real estate decisions in an evolving landscape.

Michelle Kendrick

TBG Real Estate

8400 N. University Drive, Suite 312 Tamarac, FL 33321

Email: michelle@tbgreteam.com

Phone: (954) 444-9950

COMMITTED to you!!! Let’s talk Real Estate – Whether you are buying, selling, renting or investing, The Beckford Group Team of real estate professionals can assist. Real talk for all your real estate needs starts with our managing Broker and Vice-President, Michelle Kendrick. If you are a first time home buyer, we have the experience to take you from dreaming about owning your own home to closing on the house of your dreams. Take the first step and call now; any time of the day is the right time! Call 1-954-444-9950