Existing home sales have plummeted to their lowest level in about three decades, according to data from 2024, even as active listings across the country hit their highest point in 2024. This paradox leaves buyers with more choices but fewer actual purchases.
Active listings are at their highest levels in 2024, but new home sales and housing starts are significantly down, according to data from 2024. This disconnect shows a market where availability does not translate to transactions, complicating future home improvement and building trends.
The housing market now faces increased inventory but reduced new supply. This will likely give buyers more options in the existing market, yet affordability remains a hurdle, slowing overall transaction growth. This hides a critical collapse in new construction, which will lead to a supply shortage when affordability eventually improves.
A Mixed Bag: Modest Gains Amidst Broader Stagnation
- 0.8% — The S&P Case-Shiller U.S. National Home Price Index showed an annual gain in existing home prices in April, according to Kiplinger.
- 3.2% — Existing-home sales grew in May to 4.17 million annualized units, according to Kiplinger.
While existing home prices and sales saw a slight monthly uptick, these modest gains do not signal a robust recovery. The overall yearly trend for existing home sales remains historically dire, indicating a deeper, systemic slowdown.
New Construction Stalls as Inventory Grows
| Metric | May 2024 | Change from Previous |
|---|---|---|
| Total Housing Starts (annualized) | 1.177 million units | -15.4% |
| New-Home Sales (annualized) | 580,000 units | -7.3% |
Data according to Kiplinger (2024)
The sharp decline in both housing starts and new home sales points to a significant pullback in builder activity, despite rising overall inventory. Kiplinger's data shows a 15.4% drop in total housing starts (2024). Coupled with bldr's report that 70% of builders describe market conditions as weaker than expected, this suggests the housing market is actively undermining its future supply. This sets the stage for an even more acute affordability crisis when demand inevitably returns.
