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.
Why You Need a Real Estate Agent When Purchasing a New Construction Home
When buyers consider newly built homes, they sometimes hesitate, thinking these homes might not be as durable or of the same quality as older ones. This misconception can lead them to overlook some of the best opportunities available in today's market. In fact, according to Builder Online: "As the availability of resale homes remains limited and the price gap between new and existing homes decreases, new construction homes are becoming a more appealing choice for buyers. Incentives like interest rate buydowns are also helping to address affordability concerns." So, how do you ensure that investing in a newly built home is a smart move? Let’s explore why working with an expert real estate agent can make all the difference when you're buying new construction. Selecting the Right Builder Choosing the right builder is key to ensuring you get a high-quality home. Reputable builders follow strict construction codes, use cutting-edge techniques, and often provide warranties covering structural components for years. The Mortgage Reports highlights this critical step: "When purchasing new construction, one of the most important decisions is selecting the right builder. This choice can greatly influence the quality and overall satisfaction with your new home." While researching builders on your own is an option, it can be time-consuming and overwhelming. By partnering with a local real estate agent, you gain access to their extensive knowledge of builders and new developments in your area. Here’s how your agent can help: Evaluating Builder Reputation: Your agent will point you toward builders with solid reputations and great reviews from past clients. They'll also confirm that the builder is licensed, insured, and affiliated with professional organizations like the National Association of Home Builders (NAHB), indicating adherence to high industry standards. Touring Model Homes: Agents often know which builders have model homes you can visit. Touring with your agent gives you a trained eye to notice the finer details—everything from finishes to floor plans—ensuring you’re aware of the quality you're getting. Understanding Warranties and Incentives: Many reputable builders offer warranties covering structural issues and other major components of the home. Your agent will guide you through these offers, ensuring you understand what’s covered and what incentives may be available. Coordinating Inspections: Even with new homes, inspections are crucial. Your agent will schedule inspections with certified professionals, ensuring that the home meets all safety and quality standards before you close. Why an Agent Is Vital When Purchasing New Construction Data shows that homebuyers generally rate their real estate agents more favorably than their builders after a purchase. That’s because agents offer expertise and advocacy throughout the process, while the builder’s on-site agent works for the builder. As Realtor.com notes: "If you’re considering buying new construction, it’s essential to have your own real estate agent from the start. Even if the builder’s agent seems helpful, you need someone representing your interests." Bottom Line If you’re thinking about purchasing a newly built home, don’t let common myths dissuade you. A knowledgeable real estate agent can help you find a home that meets your needs and provide peace of mind throughout the process. Let’s work together to find a home you'll love for years to come.
The Ideal Moment for Homebuyers Is Here: Don’t Miss Out!
After spending months on the sidelines due to high mortgage rates and affordability challenges, many homebuyers now have a window of opportunity to act. With interest rates slowly declining, today's housing market is a prime time for buyers—and it won’t last forever. So, if you’ve been holding off on purchasing a home, now might be the time to reconsider. Here’s why waiting could mean missing out. Consider This: What Will Other Buyers Do? As you think about whether to buy now or wait, ask yourself: what will everyone else do if rates continue to fall? The truth is, if mortgage rates keep dropping, as many experts predict, more buyers will return to the market. In fact, a Bankrate survey shows that more than half of homeowners would consider buying if rates dip below 6%. With rates already hovering around the low 6% range, we’re getting close. When they fall into the 5s, expect buyer competition to increase. (see graph below): This rise in demand could lead to higher home prices, potentially wiping out some of the savings you’d gain from a lower interest rate. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), points out: “The downside of increased demand is that it pushes home prices up as multiple buyers compete for a limited supply of homes. In markets with housing shortages, this price increase can offset the benefits of lower mortgage rates.” In other words, waiting to buy might seem like a good idea, but it could cost you more if prices rise faster than rates drop. Why Now Is a Great Time to Buy You’re in a unique position right now. The market is in a sweet spot for buyers, and here’s why: many buyers are still waiting on the sidelines, which means there’s less competition for you. Affordability has also improved. With mortgage rates easing, owning a home has become more accessible. As Mike Simonsen, Founder of Altos Research, shares: “Mortgage payments on a typical home are 7% lower than last year and 13% lower than the peak in May 2024.” Plus, while inventory is still tight, there are more homes on the market than in recent years. According to Ralph McLaughlin, Senior Economist at Realtor.com: “The number of homes for sale has increased by 35.8% compared to last year, marking ten consecutive months of growth and reaching the highest levels since May 2020.” This means more options for you as a buyer, with less competition and improved affordability. The Cost of Waiting If you’re holding out for the "perfect" time to buy, remember that timing the market is nearly impossible. The longer you wait, the higher the risk that market conditions could shift against you. Greg McBride, Chief Financial Analyst at Bankrate, warns: “It’s one of those situations where you should be careful what you wish for. A further drop in mortgage rates could spark a surge in demand, making it harder to buy a home.” Final Thoughts Don’t wait until you're facing more competition and rising prices—take advantage of today’s buyer-friendly market. Let’s connect to make sure you’re ready to seize the opportunity.
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