However, real estate experts say market conditions will return to their typical winter hibernation, ushering in a new buyer’s market — and it’s happening sooner than anticipated. After years of record price gains and bidding wars, rising interest rates and a declining job market are leading to the largest price cuts since before the pandemic.
Here’s what economists say we can expect this fall and winter:
The cooling has begun earlier than expected, and we’re observing more price cuts than in the past. The percentage of home listings with a price cut jumped to 9.2% in September, marking the highest level since 2019. This is a clear indication that motivated sellers are responding to market conditions. They understand that attracting buyers might require a more competitive pricing strategy.
Now, here’s where it gets interesting. This cooling trend presents a unique opportunity for your homebuyers. As home prices begin to dip, it’s a window of opportunity to grab your dream home before prices potentially climb again. Timing is key; right now, the clock is ticking in favor of buyers.
August witnessed a noteworthy 4% month-over-month rise in home listings. This influx of available properties is a positive sign for buyers. Additionally, while higher mortgage rates add pressure to the equation, future increases continue to be a possibility.
The culmination of these factors, including motivated sellers, a growing inventory, and price adjustments, is likely to improve the odds for aspiring home buyers in the fall and winter seasons. It’s an environment where your clients could have more negotiating power and a better chance of finding the right home at a price that suits them.
As we continue to navigate this ever-changing real estate landscape, I’m committed to providing you with the latest information and expert guidance to help you and your clients make informed decisions.
Thank you for your continued partnership, and let’s seize this exciting opportunity in the market together.
If you have any questions or want to discuss how these market conditions can benefit your clients specifically, please don’t hesitate to reach out. I’m here to support your success.