The summer is nearly over. What do you need to know right now about the real estate market?
It’s so exciting I’ll give it to you in bullet points:
- Mortgage rates are falling
- There is pent up seller demand to move on
- Buyers have been in a holding pattern
- Buyers at all price points have rising purchasing power- they aren’t stuck anymore
- Sales Prices have stabilized
- The flood gates are about to open
I’ll lay it all out for you below.
Mortgage Rates are falling
Need I say more? Rates are at their lowest levels in a year. And directionally, they are looking down!
There is Pent up Seller Demand to Move on
I just got back from the Galapagos, so forgive me if I’m thinking of tortoise metaphors. Speaking of which, there are still 11 unique species of tortoises. At least one, the saddleback tortoise, doesn’t have the capability to pull in its head and hide. Sellers, on the other hand, have definitely run for cover over the past two years. This, from what I can gather, is coming to an end.
Buyers have been in a Holding Pattern
Since mid-2022, buyers have been waiting for prices to come down. You’ll forgive me that old joke of a couple of elderly people who have been waiting all their lives for prices to keep dropping. I promise you, if you’re not careful, you’ll wait forever. But we’re seeing many signs this is no longer the case.
Buyers at all Price Points have Rising Purchasing Power
Put another way: buyers aren’t stuck anymore. As rates drop from 7% to 6% and below, buyers are getting more enthusiastic. All we need now? Inventory!
We Believe that Prices Have Stabilized
We have seen that in inventory-constrained markets prices rose even this year by 2-3%, but now this is going to push into New York City. As rates drop, we expect prices to have a floor, and for some to even start to rise here, too. But you heard it here first. As the third quarter comes to a close in a month or so, that news will likely start to trickle out.
The Flood Gates are About to Open
The only question to buyers and sellers is this: are you willing to open the door, too? Demand is there on the buying side, and only growing. More and more sellers will come out of deep freeze.
We can’t wait to help our buyers and sellers move forward in their lives. Will you be one of them? -Scott & The HRT