Lower rates and increased inventory is bringing more competition in the market, offering opportunities for both buyers and sellers.
Are you considering buying or selling a home? The real estate market is experiencing significant changes as we enter October 2024. Today, I will share the latest market trends and insights to help you make informed buying or selling decisions. Here’s what you need to know:
1. The inventory surge brings more options. As of the end of September, 22,043 homes were on the market, up from 15,562 homes at the same time last year—a substantial 43% increase in available inventory. This rise means more options for buyers searching for their dream home.
2. There is an increase in homes under contract and sold. Inventory has increased, and market activity has also seen a noticeable uptick. The number of homes under contract has risen to 6,970 this year compared to 6,616 last year, marking a 5.3% increase. Additionally, homes sold have grown to 5,699 this year from 5,481 the previous year, reflecting a 3.9% rise. These numbers indicate that more transactions are occurring, and many buyers are entering the market, signaling a more vibrant and dynamic environment.
3. Months supply of inventory. The supply of inventory for the past months has risen from 2.4 months last year to 3.4 months now, marking a 41.6% increase. While this suggests more homes are available, we still have less than a six-month supply, indicating a continued shortage.
4. Lower Federal funds rate and mortgage rates. Recently, the Federal Reserve slashed the federal funds rate by 0.5% (50 basis points). While many believe this directly lowers mortgage rates, it’s important to note that mortgage rates had already begun to drop before this cut. The public is becoming aware that rates aren’t as high as a few months ago, encouraging more buyers to enter the market.
With increased inventory and lower mortgage rates, now is an excellent time to buy or sell a home. The market is picking up, and there are more opportunities than we’ve seen in the past year. If you have any questions about the current market or are considering buying or selling a home, please contact me at (480) 596-2900 or visit our website. I’m here to help you with your real estate needs.
