September Sales Chill, Prices Cool — But What Markets Are Hot?

RE/MAX Holdings, Inc. RMAX released its National Housing Report for September 2024, which showed home sales slowed 13.3% from August and the median sales price dropped 1.4% from August to $429,000. 

The Details: RE/MAX explained the September home sales dip was a seasonal norm and pointed to prior decreases of 13.8% and 9.7% from August to September in 2023 and 2022, respectively. However, sales were 3.1% below September 2023 levels while the median home price was 4.6% higher than in September 2023.

“While we’re seeing a slight cooling in sales, it’s encouraging to note that home inventory has been steadily increasing, giving buyers more options in the market,” said RE/MAX President Amy Lessinger. 

“The consistency in sales prices and the fact that buyers are still paying 99% of asking price demonstrates the resiliency in today’s housing market. Lower rates could generate some increased activity as we end 2024 and start 2025,” Lessinger added. 

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Hot Markets: The markets with the biggest year-over-year increase in median sales price were Hartford, Connecticut, up 11.9%; Cleveland, Ohio, up 9.1% and Providence, Rhode Island, up 8.9%. New listings were up 35.9% year-over-year in Bozeman, Montana; up 32.8% in Phoenix, Arizona and Las Vegas, Nevada, saw the number of new listings rise 27.5%.

Cooling Markets: The markets with the biggest year-over-year decrease in median sales price were Coeur d’Alene, Idaho, down 4.7%; San Antonio, Texas, down 3.1% and Tampa, Florida, down 2.6%. Tampa also saw the number of new listings fall 12.3% from September 2023 and new listings in San Antonio decreased 9.1%.

Real Estate ETFs: Though inventory is increasing, the U.S. housing market remains tight with buyers paying 99% of the asking price in September. Another way to invest in the housing market is through ETFs which track the U.S. real estate market, usually through Real Estate Investment Trusts (REITs).

The Vanguard Real Estate ETF VNQ has gained 20% over the past six months and the Real Estate Select Sector SPDR Fund XLRE is up nearly 22% since April 2024. 

RMAX, VNQ, XLRE Price Action: According to Benzinga Pro, RE/MAX shares are up 3.03% at $12.23, Vanguard Real Estate shares are up 1.92% at $97.09 and Real Estate Select Sector SPDR shares are up 1.81% at $44.52 at the time of publication Tuesday.

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