Friday, October 25, 2024 / by Dick Keenan
Why Have More People Decided To Sell Their Homes Lately?
Typically, home listings slow down as summer ends, which results in fewer homes hitting the market in the fall. But this year saw a surprising twist: mortgage rates dropped just as the seasonal slowdown usually begins, motivating more homeowners to sell.
According to recent Realtor.com data, the number of homes listed for sale in September jumped by 11.6% compared to the same time last year. Instead of the usual decline, more homes came onto the market.
Ralph McLaughlin, Senior Economist at Realtor.com, explains that this unseasonal increase is tied to mid-August’s drop in mortgage rates, which spurred more people to list their homes.
What This Means for Buyers
For buyers, this shift means more fresh options to choose from—homes that haven’t been sitting unsold. However, mortgage rates have been unpredictable lately and have nudged up recently, which may keep some homeowners from listing. In this market, mortgage rates are a significant factor in the decision to sell.
Why Act Now?
Whether you’re looking for a first home, an upgrade, or a downsized space, you have more homes available to you right now. New listings won’t last forever, though, so staying on top of local inventory with the help of a knowledgeable agent is key.
And remember, a single month doesn’t set a trend. Moving forward, the number of homes listed will depend heavily on mortgage rates and broader economic conditions, including inflation, employment, and the Federal Reserve’s actions.
As Lawrence Yun, Chief Economist at the National Association of Realtors, puts it, “The rise in inventory means home buyers are in a much-improved position to find the right home at more favorable prices.”
Bottom Line
With rates dipping at summer’s end, more sellers entered the market, offering buyers a wider selection. Let’s connect to ensure you have a guide to help you seize these new options before they’re gone.