Stay informed about the latest trends in the real estate market
As we transition into the fall months, it’s time for our latest market update. Traditionally, this season tends to bring a slight slowdown in real estate activity, but this year has been exceptional. The market remains robust, with prices in most areas showing an average increase of 2 to 3% compared to last year. This stability indicates that our current market is operating within normal parameters.
One noteworthy trend in this dynamic market is the rise in interest rates. Currently, we’re experiencing a 23-year high in interest rates. Despite this, the demand for homes continues to be strong. Some sellers are even holding out, anticipating a potential drop in interest rates before making their move.
A significant portion of our successful clients are individuals looking to downsize, cash out, or relocate. In many cases, properties fitting these criteria are receiving multiple offers, especially when priced appropriately. The scarcity of available homes plays a pivotal role in driving up demand.
“The fall real estate market is defying expectations with strong demand and interest rate dynamics.”
In the current climate, homes typically sell within 30 days, particularly when priced accurately. Overpriced homes may linger on the market for a few weeks before receiving offers slightly below the list price. Looking ahead, there is anticipation that interest rates might decrease as we head into the new year. Historically, interest rates have tended to drop during election years.
Interestingly, the expectation was that interest rates would be lower at this point, but they have held steady. This has led many to speculate that when interest rates eventually do decline, the real estate market will see an acceleration in prices due to pent-up demand and increased affordability. As a result, many homebuyers are currently considering purchasing homes with the intention of refinancing in the near future.
In response to this market climate, some sellers are offering incentives related to interest rates, either temporarily or as part of their listing. If you’re contemplating a move and need more information, now might be the right time for you to make your move. Feel free to get in touch with us at (562) 316-2915 to discuss your options.
