Astonishing Housing Shifts As Rates Plummet and Inventories Improve
Astonishing Housing Shifts As Rates Plummet and Inventories Improve In September 2024 – As we move into the final quarter of 2024, the real estate market shows a mixed bag of opportunities and challenges. Here’s a snapshot of the most important data for September, both locally and nationally.
Local Market Highlights
The median sales price for homes in our area remained steady at $250,000, unchanged from September 2023. While prices are stable, there has been a slight uptick in activity, with the number of units closed increasing by 2% compared to the same period last year.
For buyers, the inventory is showing signs of growth. Housing supply is up 13.6%, offering a greater selection for those entering the market. However, despite more options, the average days on the market have risen significantly by 40.7%, now standing at 33 days. This suggests that homes are taking longer to sell, which may be due to a combination of increased choices and a cautious attitude from buyers.
Another key trend is the rise in price reductions. In the last few months, we’ve seen more price cuts than in any other period over the past five years, indicating that sellers are adjusting their expectations to attract buyers.
A bright spot for both buyers and sellers is the decrease in interest rates. The average mortgage interest rate in September 2024 dropped to 6.24%, down from 7.72% in September 2023, a 19% decrease. This reduction is providing some much-needed relief to buyers and encouraging more sellers to list their homes, hoping to take advantage of more favorable borrowing conditions.
That said, the market has slowed somewhat over the last 4-6 weeks, which many attribute to the volatile election cycle. Buyers seem hesitant to act, possibly waiting for more stability before making significant financial decisions.
National Real Estate Trends
On the national level, trends reported by the National Association of REALTORS® (NAR) provide further context for the broader housing market.
- The median list price of homes in September 2024 was $425,000, a modest decrease of $5,000 from the previous month. Interestingly, the price per square foot increased by 2.3% year-over-year, reflecting a shift toward smaller but more expensive homes.
- Existing-home sales saw a decline of 2.5% in August 2024 compared to July, with three out of four major regions reporting drops. This reinforces the idea that both buyers and sellers are treading cautiously in the current economic climate.
- However, pending home sales increased by 0.6%, particularly in the Midwest, South, and West, while the Northeast experienced a slight decline.
- Housing affordability improved, with the index rising to 95 in July 2024. This means that a family with the median income now has more than enough income to afford a median-priced home.
- In terms of market speed, 60% of REALTORS® reported properties selling within one month, down slightly from 62% in the previous month and significantly from 72% in August 2023. Homes are staying on the market longer, indicating a shift toward a more balanced market.
- Finally, baby boomers, who own 38% of the homes in the U.S., are not rushing to sell. Over half of this group expressed that they do not plan to sell their homes, which could impact future inventory levels.
What Does This Mean for You?
Increased inventory, slower sales, and lower interest rates present both opportunities and challenges. For buyers, there are more choices and less urgency, with price reductions offering a chance to find value in the market. For sellers, adjusting to these changes may require some flexibility in pricing and expectations.
If you’re considering buying or selling, now is a good time to explore your options with a clear understanding of the current trends. Feel free to reach out for personalized advice on navigating today’s market!
Astonishing Housing Shifts As Rates Plummet and Inventories Improve
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Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results, is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
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The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to RE/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
