Homeowners typically slow their moving plans as the summer months wrap up, so fewer homes are listed for sale in the fall. It's a predictable, seasonal trend in real estate. But this year, mortgage rates came down when the number of homes on the market usually declined. So, what happened? More homeowners decided to sell, so more homes went to the market.
The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to last year.
As the green circle in the graph below shows, the typical September decline in homes coming to the market didn't happen – that number went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
According to Ralph McLaughlin, Senior Economist at Realtor.com, The sharp increase in homes for sale is primarily due to the decline in mortgage rates in mid-August. Lower mortgage rates make it more affordable for potential buyers to finance a home, encouraging more homeowners to sell their properties.
So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.
What Does This Mean If You're Looking To Buy a Home?
It means more fresh options than you've had in a while – not those sitting around unsold.
But remember that mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. In this market, mortgage rates are mainly driving homeowner decisions.
Why Buy Now, Rather Than Wait?
Whether you're looking for a starter home, an upgrade, or hoping to downsize, you now have more homes to choose from. And if you can find what you're looking for, know that these new, fresh options will only be on the market for a while. So, staying on top of what's available in your local area with a trusted agent is critical.
And remember, one month doesn't make a trend. So, what does that mean going forward? Whether more homeowners than average continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve. These factors can introduce unpredictability in the market, making it essential to stay informed and work with a trusted advisor.
With that in mind, now might be your moment while more homes are available – if you're ready, willing, and able to buy this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
With the rise in inventory, home buyers are in a much-improved position to find the right home at more favorable prices. This supply increase could lead to a stabilization or even a slight decrease in home prices, making it a favorable time for buyers.
Bottom Line
As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. Let's connect to ensure you have a trusted advisor to help you navigate the new options before they're all scooped up.
