Typically, as summer ends, homeowners slow down their moving plans, resulting in fewer homes on the market during the fall—this is a common seasonal pattern in real estate. This year, however, the situation changed. With mortgage rates decreasing alongside the usual drop in available homes, more sellers decided to list their properties.
According to the latest data from Realtor.com, September saw an 11.6% rise in homes for sale compared to the previous year.
The expected decline in listings didn’t happen; instead, we witnessed an increase, as shown by the green circle in the graph below.
According to Ralph McLaughlin, Senior Economist at Realtor.com, the recent rise in listings is explained by a key factor:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
With rates falling as summer wrapped up, more people decided it was the right time to make their move.
What Does This Mean If You’re in the Market to Buy a Home?
It means you’ll find more new options available to you, rather than just the homes that have been unsold for a while.
Keep in mind, though, that mortgage rates have been unpredictable lately, experiencing a small rise in recent weeks. This could discourage some sellers from listing their homes in the coming months, as homeowner choices are heavily impacted by these rates.
Why Consider Buying Now Rather Than Later?
If you’re looking for a starter home, thinking of upgrading, or hoping to downsize, the current market has more homes available than you may have encountered recently. Keep in mind that these fresh options won’t last forever, so staying updated on local inventory with a trusted real estate agent is vital.
Also, remember that a single month of data doesn’t set a trend. The future supply of homes will depend significantly on mortgage rates and economic conditions that affect them, such as inflation, employment levels, and the Federal Reserve’s policies.
With all this in mind, now might be the perfect time to buy while there are more homes to choose from—if you’re ready, willing, and able to make a move this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains further:
“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
With rates dropping at summer’s end, we’re seeing a steady return of sellers, which means buyers now have more options to consider. Reach out to connect with a trusted advisor who can guide you through these new opportunities before they get snapped up.