Homeowners tend to slow down their moving plans as summer ends, resulting in fewer homes being listed for sale in the fall. It’s a common seasonal trend in real estate. However, this year, mortgage rates dropped just as the number of homes for sale typically begins to decrease. So, what happened? More homeowners decided to sell, bringing more homes onto the market.
Recent data shows that in September, the number of homes listed for sale increased by 11.6% compared to the same time last year.
Instead of the usual September decline in new listings, the number actually rose:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, encouraging more homeowners to sell.”
As rates dropped at the end of summer, more people entered the market and decided to move.
What Does This Mean If You’re Looking To Buy a Home?
It means there are fresher options to choose from – not just the homes that have been sitting on the market for a while.
However, keep in mind that mortgage rates have been unpredictable recently, with slight increases in recent weeks. This could limit the number of people comfortable with selling in the months ahead, as mortgage rates are a key factor in homeowners’ decisions.
Why Buy Now, Rather Than Wait?
Whether you’re searching for a starter home, upgrading, or downsizing, there are more options available right now. If you find something that meets your needs, remember that these new listings won’t stay on the market forever. Keeping an eye on local listings with a trusted agent is crucial.
One month’s data doesn’t make a trend, so what happens going forward will depend largely on mortgage rates and the economic factors affecting them, like inflation, employment, and actions by financial authorities.
With that in mind, now could be a good time to buy while more homes are on the market, especially if you’re ready and able to make a move this fall.
According to experts, “The rise in inventory – and, more technically, the increase in months’ supply – means home buyers are in a better position to find the right home, potentially at more favorable prices.”
Bottom Line
As mortgage rates dropped at the end of summer, more sellers returned to the market, giving buyers more options. Working with a knowledgeable local real estate agent is the best way to take advantage of these opportunities before they disappear.
