‘Tis the Season for Caution
(And Anticipation)
It’s been a busy month. The election is in the past. The holidays are upon us. And buyers and sellers alike are wondering what the near (and far) future holds as we approach 2025. The main thing on everyone’s mind is rates: Will they come down? Are they static? Are they going to inch up? Forecasters are pointing toward more stability in the coming weeks and months.
Mortgage Rates & Projections
30-Year Fixed Rate, As of 11/13/2024
Source: Fannie Mae, MBA, NAR, Wells Fargo
This all bodes well for buyers, in particular, as a more favorable mortgage rate environment would bring some needed relief. Higher rates have been an issue, and recent studies show 70% of buyers halted their search due to affordability concerns. But the horizon is brightening. As rates decrease, many will reenter the market, increasing competition. Now is the time to be strategic and vigilant. Yes, being cautious is paramount, but recognizing the hidden gems out there—and being ready to act when opportunity beckons—is the key to landing your dream home.
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Are Prices Coming Down Or Going Up?
One of the best outcomes of this uncertain market is the fact that home prices have remained stable—in part due to a long-standing inventory shortage. Over the past decade or more, inventory has been out of whack due to significant underbuilding. Following COVID-19, low rates and limited inventory drove prices sky-high. But now forecasters project modest (not dramatic) home appreciation of 2.5–4%, suggesting a much healthier, balanced market. For sellers, competitive pricing remains crucial to attract buyers. For buyers, favorable prices and home values reflect a more stable environment for long-term investments. So, this could be a win-win for both.
Home Prices Are Forecast to Rise in 2025
Price Appreciation as of 11/5/2024
Did You Know?
Inventory continues to tick upward. October marked the 12th consecutive month of annual inventory growth, with active listings up nearly 30% year-over-year—the highest levels since 2019. More homes mean more options for buyers and less pressure to enter bidding wars. For sellers, increased competition highlights the importance of preparing and presenting your property to stand out in a growing market.