Friday, October 25, 2024 / by Dick Keenan
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 decis. ...
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Friday, October 25, 2024 / by Dick Keenan
Wondering where the housing market is headed in 2025? Experts are predicting promising trends in two critical areas: mortgage rates and home prices. Whether you’re considering buying or selling, here’s what to expect and how it could influence your plans.
Mortgage Rates Likely to Ease
Mortgage rates have been a major factor impacting homebuying decisions, and the outlook for 2025 is encouraging. Experts expect rates to trend down gradually over the next year. While it won’t be a consistent drop, the overall direction should be positive. Rates will respond to economic data and inflation updates as they come in, so there may be some fluctuations along the way, but staying focused on the bigger picture can help.
As rates decrease, affordability improves, meaning monthly mortgage payments are likely to go down, giving buyers more flexibility. Lower rates could bring more buyers into the market, increasing demand. Charlie Dougherty, Senior Economist at Wells Fargo. ...
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Friday, October 25, 2024 / by Dick Keenan
If selling your home in 2025 is on your radar, now’s the time to begin preparing. While the new year may seem far off, starting early on any repairs or updates can make a big difference. As Danielle Hale, Chief Economist at Realtor.com, points out, it’s wise to plan ahead:
“Now is the time to start thinking about what you need for your next home and then taking those steps to prepare to list. Our data shows 47 percent of sellers are taking over a month to get their home ready, so starting early gives you more flexibility.”
Getting a jump start on your prep allows you to work at a comfortable pace and be ready to hit the market by year’s end. Partnering with an experienced agent early on is also key—they can guide you on which upgrades will add the most value based on your local market.
Why Starting Early Matters
When it comes to selling quickly and at the best price, first impressions matter. Take the time now to complete any repairs, declutter. ...
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Thursday, October 24, 2024 / by Dick Keenan
With ongoing discussions about the economy and the possibility of a recession, it’s understandable if you’re feeling anxious about the housing market. If you’ve been hearing concerns about a potential crash, rest assured—the market today is not set up for a repeat of 2008.
Here’s why you don’t need to worry about a crash in the housing market right now.
1. Strong Demand for Homes Outpaces Supply
One of the key reasons for the 2008 crash was an oversupply of homes. Today, we’re facing the opposite problem: there aren’t enough homes to meet the demand.
In a balanced market, there’s usually about a six-month supply of homes. That means if no new homes were listed, it would take six months to sell everything currently available. Back in 2008, supply shot up to 13 months—an oversupply that led to falling prices. But today’s market looks very different. Right now, we have just 4.2 months of supply, meaning demand i. ...
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Thursday, October 3, 2024 / by Dick Keenan
Lately, the headlines have been buzzing about the median asking price of homes dropping compared to last year, which has caused some confusion. As a buyer or seller, you might assume this means home prices are falling—but that's not exactly true. The reality is that while the median price may be down, home values are still on the rise. Let's break it down to clear up the confusion and help you understand the current housing market.
Smaller Homes Are Shaping the Market
The drop in median price has more to do with the size of homes currently on the market than an actual decrease in home values. The median price represents the midpoint of all homes for sale at a given time. This figure is influenced by the mix of homes available.
To put it simply, if smaller, more affordable homes are dominating the market, the median price will reflect that. For example, if you have a row of three coins—a nickel, a dime, and another dime—the median is 10 cents. But if that mix . ...
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