Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, 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 at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came 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 this time 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 actually went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
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 to choose from than you’ve had in a while – not the ones that have been sitting around, unsold.
But keep in mind, 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. And in this market, it’s mortgage rates that are largely driving homeowner decisions.
Why Buy Now, Rather Than Wait?
Whether you’re looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key.
And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal 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.
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:
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
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. And working with a trusted local real estate agent is the best way to take advantage of your new options before they’re all scooped up.
Find Your Next Home
[showcaseidx_search submit_text=”Search Homes >>” margin=”8″ hide=”types”]
If you’re reading this late at night and want to start now, first send me an email, then focus on these items of the home buying process: 1) Download my Home Buyers Guide to learn general information (if you’re into doing your own research). 2) Talk to a quality mortgage lender and get pre-approved for financing. 3) Search for homes currently on the market to get a feel for the types of homes, locations, and price points available. 4) Read my Denver real estate blog (updated daily!) to further educate yourself about the market and relevant topics for home buyers. And of course, when in doubt, just call me and I will help you with each step of your journey.
Create Your Free MLS Home Search Account »
When It Is Time To Sell Your Home
My Denver real estate blog is updated daily with useful information for home buyers and sellers…
Real Estate Housing Market | Buying a Home | Selling a Home | Financing a Home | Renting | Homeownership | Investing
Hi, I'm 