Fall 2024 Housing Outlook

At the beginning of the year, experts predicted that the housing market would continue to see higher sales prices and a slightly lower, more stable interest rate; increasing the number of potential buyers in the market. This in turn creates a shortage of inventory and inceases the potential of multiple offer situations on listings. As of spring and summer 2024, many of these predictions turned out to be relatively accurate. However, with interest rates still sitting in the 6-8% range and the upcoming 2024 Presidential Election, many home buyers have put their hunt on pause until spring. Meaning less competition, longer days on market for listings and buyers having more leverage when it comes to negotiating with sellers.

 

Although home prices continue to rise, the real estate market in the fall almost always experiences a "rush" and then a "lull" until spring market starts to take form. Typically as a buyer, one of the best times to negotiate a real estate transaction is right in between some of the major American holidays (Thanksgiving-New Years). Given the current market data, many experts say that now is the best time to take advantage of the improved market conditions and get ahead of the potential demand surge that could put upward pressure on home prices and leave many buyers in high competition for homes.

 

It's a little too early to tell if the 2025 real estate market will be in better balance than the 2024 real estate market and there are several variables that must line up for the housing market to start to recover. Given that the Fed finally cut the federal funds rate in September (and there are likely more cuts in store), we're starting to see a more stable real estate market. That being said, if rates are cut too quickly, it could lead to a surge of demand that wipes away any inventory gains in turn causing home prices to rebound or even skyrocket. Nonetheless, with over 86% of homeowners with mortgage paying rates less than 6%, the rates will have to get closer or lower than 6% to entice more owners to sell therefore creating more inventory for potential buyers.

 

If you're planning on buying a home, this fall may be your best chance at getting a deal. If you hold off until spring, you run the risk of potentially rising interest rates, lack of inventory and more buyer competition. If you find the right home and you can make the numbers work, now is likely the right time to pull the trigger.

 

If you're planning on selling a home, it may be best to take a look at your current home more in depth and see if there are any improvements you can make prior to spring market. However, with the current lack of inventory you may still find the right buyer for your home in the current market. Every case is different and it just depends on the home!

 

All of that being said, there is almost never really a "key" time to buy or sell a home. Every transaction can play out so differently and speaking with a honest real estate agent about your goals will help you determine the right time for you to make a move.