2024 Fall Market Update

Get the latest real estate news with this quick and easy-to-understand market update!

Real Estate Market:

• The average rate of a 30-year fixed home loan as of September 25, 2024, is 6.13%, which is a 17% decrease from the same time last year. After the Fed's recent 50 basis point rate cut, mortgage rates are trending down.
  
  
• As of August 2024, the median sales price of existing homes in the U.S. decreased to $416,700 from $426,900 in June.
  
  
• Active inventory is up 33.2% compared to last year, marking 46 straight weeks of year-over-year growth. Though mortgage rates have dropped for four weeks straight, purchase applications aren’t rising much. Buyers are adopting a wait-and-see approach, influenced by the drop in rates and the growing availability of homes for sale.
  
  
• New homes are getting smaller and more affordable, with a median size of 1,965 square feet in 2024. Builders are adapting to affordability challenges, and the number of new homes on the market has increased by over 30% compared to pre-pandemic levels.
  
  
• The median credit score for new mortgages in early 2024 was 770, according to the Federal Reserve Bank of New York.

Financial Market:

• The U.S. annual inflation rate pulled back in August 2024 to 2.5%, down from 3% in June. The Fed's recent rate cut aims to support this decline and could lead to more favorable mortgage conditions for buyers.
  
  
• In September, the U.S. economy added 254,000 jobs, beating expectations, while the unemployment rate dropped to 4.1%. Economists had predicted 150,000 new jobs and an unemployment rate of 4.2%. The labor market remains solid, driven by demand and rising wages. Additionally, revised figures show 72,000 more jobs were added in July and August than previously reported.
  
  
• The U.S. economy grew by 3.0% in the second quarter of 2024, driven by higher consumer spending and private inventory investment. This is a notable improvement from the slowed 1.6% growth in the first quarter.
  
  
• Personal incomes rose 5% in the second quarter of 2024, with disposable income also seeing a boost, helping buyers have more financial flexibility.

What This Means for You

Buyers: You have more opportunities to find the right home with cooling inflation, declining rates, and rising inventory.

Sellers: If you're a homeowner and thinking about selling, you could benefit from the growing demand in the market driven by those falling rates. Since 2020, homeowners have gained over $1 trillion in equity, putting many sellers in a strong position to leverage that equity for their next purchase. Overall, these gradual shifts in the market could open more doors for both buyers and sellers this fall.

Refinancers: Now is also a great time for you to consider refinancing, especially since the Fed just dropped rates. This recent move could mean lower monthly payments or even help you access some of the equity you’ve built up in your home. Whether you're looking to reduce your interest rate, shorten your loan term, or tap into cash for renovations or other expenses, this could be the perfect opportunity.

Don’t miss out on the chance to save—reach out to explore your options today!