Needs-based buyers are keeping the housing market going
NEWPORT BEACH, Calif., Nov. 22, 2024 /PRNewswire-PRWeb/ -- Recent months have presented a mixed bag for the housing market, according to new research from Zonda.
The challenge has been that mortgage rates reversed their course. In September, mortgage rates hit the lowest level since late-2022. By early October, mortgage rates were already trending up in anticipation of increased government spending, stronger economic growth projections, and the prospect of a pickup in inflation.
The resulting impact has been significant volatility in the mortgage market, including rates surging back into the low-7%s.
"Home sales in October captured the push and pull of the market," said Ali Wolf, chief economist for Zonda. "Overall sales did slip modestly month-over-month but remained nearly 11% above levels last year, a time when mortgage interest rates averaged 7.6%. The relatively stable sales environment today underscores the role of need-based buyers who are driving demand, almost regardless of macro conditions."
Zonda's new home sales metric shows there were 707,457 new homes sold in October on a seasonally adjusted annualized rate. This was a decline of 1.1% from last month but an increase of 10.7% from a year ago. On a non-seasonally adjusted basis 55,992 homes were sold, 11.9% higher than last year and 7.2% above the same month in 2019.
National home prices decreased year-over-year for entry-level (fell 2.6% to $329,351) and move-up homes (fell 1.6% to $519,064). Prices were largely flat in the high-end market (fell 0.1% to $915,328). The declines represent a mix of select price drops, smaller home sizes, and differing locations.
National quick move-ins (QMIs) totaled 30,487, up 1.9% compared to last year but 11.5% lower month-over-month. Total QMIs are 39.0% above 2019 levels. QMIs are homes that can likely be occupied within 90 days.
For many consumers, QMIs provide a great option given the lack of resale supply. As a result, some builders have pivoted to a more spec-heavy strategy to help capture today's buyers. In some markets, however, resale inventory is rising and QMIs have become less desirable than earlier this year.
For the full report, including data and analysis, click here.
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About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.
Media Contact
Diane Begin, Zonda, 224-836-5615, [email protected], https://zondahome.com/
SOURCE Zonda
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