The fall season may offer a prime opportunity for buyers with less competition and the chance for better deals.
What to Expect this Fall in Real Estate
The real estate market experienced a slowdown in August due to high mortgage rates, with homes spending an average of 53 days on the market, the longest in five years. Despite 19.3% of listings facing price cuts, this slump may provide an opportunity for buyers in the fall as the market becomes less competitive than what the Washington DC Area has been experiencing the past 4 years.
The graph below shows the flow and the increase in inventory over the past 24 years.
As more homes become available, buyers will have more time to make decisions, but some may choose to wait until after the 2025 presidential election for stability. Falling mortgage rates could lead to increased demand and slightly higher home prices, but buyers will likely remain selective, requiring sellers to enhance their listings to attract interest. Overall, the fall season may offer a prime opportunity for buyers with less competition and the chance for better deals.
Interest Rates Expected to Drop
Economists predict mortgage rates could drop to 6.3% by the end of
2024, encouraging sellers to list homes they’ve been holding onto due to favorable prior rates. This in turn will cause inventory to increase. Mortgage rates had already begun to decline, averaging 6.29% by September 6, as financial markets reacted to economic indicators. With recent data indicating a slowing job market and cooling inflation, the anticipated rate cut of 50 basis point cut just occurred at the Fed’s September meeting.
The Federal Reserve is expected to cut interest rates even more, which will likely lead to lower mortgage rates as investors anticipate this change. The housing market has been affected by previous rate hikes, causing home sales to plummet and mortgage rates to peak near 8% last October.
Ultimately, home purchasing and selling decisions should be based more on personal needs rather than fluctuating mortgage rates. It always comes down to what is YOUR timing to sell, buy or invest.
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Whether you’re selling, buying, or investing, choosing an experienced and trusted realtor is essential. I can offer expert insights and keep you informed about the current market trends, helping you make confident decisions for your next big move or purchase. Feel free to reach out to me at 703-646-1750 or email janet@simplyyourbestmove.com.
