This fall, the real estate market is giving prospective homebuyers and current owners something to talk about. With fluctuating mortgage rates, rising inventory, and a bit more breathing room for decision making, it’s a great time to dive into the market.
Here’s a breakdown of what's happening and what it means for you.
Mortgage Rates hit 20-Month Low in September 🚀
Mortgage rates dipped to a 20-month low last month, landing just above 6%. This brought more buyers into the market and the number of home showings surged.
Inventory on the Rise 📈
For the past eight months, housing inventory has been steadily climbing, which is music to the ears of eager buyers. At the end of September, the DC Metro area reported 7,902 active listings—a significant 18.9% bump compared to a year ago. Buyers are more likely to get subsidies and contingencies accepted than they were in the spring. But here’s the kicker: inventory is still just over half of what it was back in 2019, meaning we’re still in a competitive market.
Affordability Remains a Challenge 💸
The DC metro area remains a tough market for first-time buyers and those on a budget. With high prices persisting, affordability is top of mind. Yet, the combination of lower rates and more supply helped ease some pressure last month:
New pending sales up by 15.7% from last September.
Showings on the rise by 5.9% compared to the same time last year.
Market Outlook 🌟
So, what’s the forecast? Some unexpectedly strong economic reports in October have caused rates to move back up from their September lows. Still, buyers and sellers are expected to stay active through the fourth quarter. Affordability challenges remain and many first-time homebuyers or those searching for more affordable options might consider suburban markets farther out of the city for a bit more breathing room.
Whether you're a prospective buyer, a homeowner, or just a market-watcher, this fall brings a refreshing opportunity to make a move in what has been, until now, a very challenging market. Keep an eye on mortgage rates, stay updated on local listings, and you may just find the right fit before the year's end!
Give me a call today to talk more about data in your specific area, and to create a strategic plan that meets your needs.
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