Why Have More People Recently Decided to Sell Their Homes?

Typically, as the summer ends, we see a slowdown in the number of homes being listed for sale. It’s a common seasonal trend where homeowners hold off on selling as fall approaches. However, this year saw an unusual shift. At the same time that mortgage rates decreased, more homeowners decided to list their properties, leading to a rise in available homes on the market.

Recent data from Realtor.com indicates that, in September, the number of homes listed for sale jumped by 11.6% compared to the same period last year.

As shown in the green section of the graph below (see graph below), the usual fall dip in housing inventory didn’t happen this year – instead, the number of homes entering the market rose.

Ralph McLaughlin, Senior Economist at Realtor.com, attributes this trend to falling mortgage rates:

“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

As mortgage rates dropped at the end of summer, more homeowners felt confident in listing their homes, leading to a boost in inventory.

What Does This Mean for Homebuyers? For those looking to buy a home, it means there are more fresh listings to consider – not just homes that have been sitting unsold. However, it’s important to note that mortgage rates have been fluctuating recently, which may make some homeowners hesitant to sell in the coming months. Mortgage rates continue to play a critical role in shaping homeowners’ decisions to list their properties.

Why Buy Now Instead of Waiting? Whether you're a first-time homebuyer, upgrading, or downsizing, there are currently more homes available to explore. If you find a property that suits your needs, keep in mind that these new listings won't last forever. Working with a trusted agent will help you stay on top of the latest listings and ensure you’re ready to act quickly.

It’s also worth noting that one month doesn’t establish a lasting trend. Future home listings will likely depend on how mortgage rates and other economic factors, like inflation and employment, unfold. The Federal Reserve’s actions will also have an impact on the market.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”

Bottom Line 

As mortgage rates eased, more sellers returned to the market, offering buyers a wider range of choices. If you’re considering buying this fall, now could be a great time to act before these new listings are taken off the market. Let’s connect so you have expert guidance in navigating your home search during this unique time.