October 2024
The Fed finally dropped Interest rates. Is now the time to sell your home or buy your new one? Let’s take a look;
Buyers
Historically, October – December is a time when kids are back in school, holiday planning starts, and moving your home is usually not top of mind. As a result, there are fewer buyers in the market and less competition. Coupled with increasing inventory levels, these conditions could make it a great time to be a buyer. But the Fed also announced additional rate cuts to come. Should a buyer then wait? It’s a risky proposition. After about the first week in January, the real estate market starts to pick up again. With that increased demand comes upward pressure on prices. The top economists in the industry are predicting a 4.6% rate of appreciation for 2025. So yes, you might get a better rate sometime next year but if you have to pay more for the house, is it worth it? You can always refi.
Sellers
On the sell side, the rate drop was supposed to help push those buyers sitting on the sidelines into the market and buy. Looks like they might need a little bigger shove. For all the reasons above – the season, additional predicted rate drops, many buyers are still sitting. But usually when people decide to sell their home, they have a pretty good reason or plan behind doing so. So, if you are committed to selling, unlike earlier this year, just don’t expect to have your house fly off the market with multiple offers if you’re a seller. Even though inventory is increasing, its still low and demand is still high, keeping pricing high as well. That could all change the longer you wait.
As always, your personal circumstances will dictate the best decision for you. Talking through your personal considerations with your trusted real estate advisor is always a good first step.
