WEEKLY MARKET UPDATE October 26th, 2024

October has been rough for buyers, with 30-year mortgage rates jumping due to concerns about the job market, stubborn inflation, and rising U.S. debt. On the bright side, inventory is increasing, and competition is easing.

Market Snapshot:

• Stuck Home Sales: Despite lower mortgage rates earlier this year, September’s existing home sales fell 1.0%, marking a new low for 2024. We’re now facing the weakest market in 30 years.
• Less Competition: Homes are seeing fewer bidders, and the sales pace has slowed—not just a seasonal change.
• Home Prices: Redfin’s data shows a 0.5% increase in home prices in September, though 13 major metros saw declines.
• Rent Trends: Entry-level rents dipped 0.2% in August, which is unusual for that month.

Why Are Rates Rising?

Despite recent Fed rate cuts, mortgage rates have jumped from 6.11% to 6.92%. This could be due to:

1. Typical post-rate cut market reactions.
2. Vital job and inflation data after the cuts.
3. October’s history of financial volatility.
4. Uncertainty around the upcoming election.

Buyer Outlook:

While only 20% of Realtors expect buyer traffic to increase, that’s a step up from last year’s 8%. In September, homes received an average of 2.4 offers—down from the peak during the COVID era but close to pre-pandemic levels.

Key Metrics:

• Homes Above List Price: 20% sold above asking in September, down from last year.
• Days on Market: Average time rose to 28 days, indicating a slower pace.

Thank you for reading! If you have any questions or want to discuss the market, feel free to contact me. I’d love to hear from you.