Home Sales Rebound, a Noncompete Ruling, and Purple's Manufacturing Shift

Originally published August 23, 2024. This version was rebuilt from NAR's existing-home sales report, the FTC's noncompete rule page and Purple's consolidation release for the FIN archive, and the facts are as of that date.

Late August 2024 brought the first rise in home resales in months, a court ruling that kept noncompete agreements legal for now and a bedding maker shrinking its factory footprint.

The short version

• NAR said existing-home sales grew 1.3% to 3.95 million in July.
• On August 20 a district court issued an order stopping the FTC from enforcing its noncompete rule.
• Purple said it would consolidate mattress production in McDonough, Georgia and close two Utah plants.

Existing-home market shows signs of recovery

NAR said existing-home sales grew 1.3% in July to an annual rate of 3.95 million, stopping a four-month decline, though sales were 2.5% below a year earlier. The median price rose 4.2% to $422,600.

Inventory rose 0.8% to 1.33 million homes, or 4.0 months of supply. More homes for sale and a halt in the sales slide were early signs of a housing turn that furniture sellers were waiting for.

Federal judge blocks FTC noncompete ban

The FTC's rule would have banned most noncompete agreements. On August 20 a district court issued an order stopping the FTC from enforcing the rule, so it did not take effect.

Furniture makers and retailers that use noncompetes for sales reps, designers and managers could keep relying on them while the case continued.

Update. The FTC appealed in October 2024, then took steps to dismiss its appeal in September 2025.

Purple consolidates manufacturing

Purple said it would consolidate its mattress production into its McDonough, Georgia facility and close facilities in Salt Lake City and Grantsville, Utah. The Georgia move was expected by December 31, 2024 and the Utah closures in the first quarter of 2025.

Purple expected the moves to generate $15 to $20 million in EBITDA benefit in 2025.

Looking ahead

A pause in the home sales slide, a legal reprieve for employer agreements and a bedding maker cutting costs all pointed to an industry bracing for a slow recovery.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.

Sources

• National Association of Realtors, Existing-home sales advanced 1.3% in July (Aug. 22, 2024)
• Federal Trade Commission, Noncompete Rule status page
• Purple Innovation, Consolidation of manufacturing operations (Aug. 22, 2024)