Housing Lows, New Home Gains, and Wayfair's New Loyalty Program

Originally published October 25, 2024. This version was rebuilt from NAR's existing-home sales report, the Census Bureau's new home sales report and Wayfair's program announcement for the FIN archive, and the facts are as of that date.

Late October 2024 showed a split housing market. Resales hit their slowest pace in years while new homes sold well, and the largest online furniture seller tried a new way to keep customers coming back.

The short version

• NAR said existing-home sales fell 1.0% to 3.84 million in September.
• Census said new home sales rose 4.1% to 738,000 in September.
• Wayfair introduced Wayfair Rewards, a $29 a year membership with 5% back on purchases.

Existing-home sales slide

NAR said existing-home sales descended 1.0% in September to an annual rate of 3.84 million and were 3.5% below a year earlier. The median price rose 3.0% to $404,500.

Inventory rose 1.5% to 1.39 million homes, or 4.3 months of supply. More homes for sale but fewer closings meant buyers were still waiting on lower mortgage rates.

New home sales rise

Sales of new single-family homes ran at an annual rate of 738,000 in September, 4.1% above August and 6.3% above a year earlier.

Buyers of new homes typically furnish several rooms at once. That gave furniture sellers in fast-growing markets a better read than the resale numbers suggested.

Wayfair's new loyalty program

Wayfair said Wayfair Rewards would be available for a $29 yearly subscription and would give members 5% back in rewards on all merchandise across Wayfair, AllModern, Birch Lane, Joss & Main and Perigold.

Rewards never expire while the membership is active. A paid loyalty program is one way to win repeat purchases in a category where customers buy infrequently.

Staying ahead

The housing data pointed to new construction, not resales, as the near-term source of furniture demand. Retailers that kept customers loyal between big purchases had an edge.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Every Door in Town

Sources

• National Association of Realtors, Existing-home sales slid 1.0% in September (Oct. 23, 2024)
• U.S. Census Bureau and HUD, New residential sales, September 2024
• Wayfair Inc., Introducing Wayfair Rewards (Oct. 2024)