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The real estate market in September 2024 is experiencing some interesting shifts, and if you’re following the news, you’ve probably heard about the latest developments in interest rates. As a full-time realtor who is deeply embedded in the market every day, I’m here to give you an insider's view of what's happening—because things are feeling a bit weird out there right now. Let’s dive into the latest news and what I’m personally seeing as I help buyers and sellers navigate these changes.
Fed’s First Interest Rate Cut Since 2020
In a significant move, the Federal Reserve announced its first interest rate cut since the early days of COVID in 2020. On September 18th, the Fed lowered interest rates by 50 basis points. According to their statement, this cut is part of their strategy to stabilize prices while keeping employment at optimal levels.
The timing of this decision aligns with the slight uptick in unemployment rates, which you can see in the graph below. As inflation has started to fall closer to the Fed's target, they felt confident enough to reduce rates. This balance between inflation and employment is key to understanding why the cut happened now.
Mortgage Rates: A Healthier Market
As a result of the Fed’s decision, mortgage rates have started to stabilize. Currently, many buyers are finding themselves securing rates in the low 6% range for a 30-year mortgage. Of course, rates will vary depending on individual circumstances like the lender, terms, and the buyer’s financial profile. But overall, this is a significant improvement compared to the sky-high rates of the last year or two.
What I’m Seeing on the Ground
While the market should, in theory, be heating up with lower interest rates, what I’m seeing firsthand tells a different story. There’s a noticeable increase in days on market for many properties. Statistically, homes are taking longer to sell, and personally, I’ve witnessed homes that I thought would sell quickly sitting for two, three, or even four weeks. In some cases, this is due to overpricing, but not always. I’ve seen well-priced, well-marketed homes take longer to sell than they would have just a year or two ago.
It’s not just about overpriced properties—something else is at play here.
Why Aren’t Homes Moving as Quickly?
I believe there are a couple of reasons behind this. First, there’s a general lack of urgency from buyers. Many are waiting, anticipating that interest rates will continue to drop. With predictions suggesting that rates may decrease further, potential buyers seem willing to wait for an even better deal.
Secondly, we’re in an election year, which always adds some nervousness and hesitation to the market. With less than 40 days to go until the election, many buyers may be holding off, waiting for the dust to settle before making a major financial commitment like purchasing a home.
Fewer Offers and More Price Reductions
With buyers in a holding pattern, we’re seeing a reduction in the number of offers on properties. Sellers who once received multiple offers within days are now seeing far fewer bids, and price reductions are becoming more common.
Sellers aren’t receiving the same number of offers they once did, I’ve noticed. Multiple-offer situations still happen, but they’re far less frequent than what we’ve seen over the last couple of years. And if a property sits without receiving any offers, the next step is often a price reduction.
Is It Still a Seller’s Market?
While it’s still technically a seller’s market, things are moving toward a more balanced or neutral market. Sellers will need to be more strategic, and they should prepare for a slower sale process. The days of lightning-fast sales with over-asking offers are becoming the exception rather than the rule.
Should Buyers Move Now?
If you’re a buyer, this may actually be a great time to jump into the market. Interest rates are lower, and because we haven’t yet seen a flood of buyers armed with lower-rate pre-approvals, competition is still relatively mild. Winter will bring the usual slowdown, but for now, it’s a prime window to make a move.
In fact, I feel so confident in this advice that I’m taking it myself—I’m actively buying and selling property in this market.
Wrapping Up: A Shifting Market Requires Strategy
So, what’s the takeaway from this September market update? Sellers, be prepared for a longer sales process and fewer offers. Buyers, take advantage of this lull in competition and favorable interest rates before the market heats up again.
Ultimately, whether you’re buying or selling, now is still a good time to make a move—it just requires a bit more strategy than in recent years.
For more resources on buying and selling real estate, feel free to check out my website. I’ve just added a new client resources portal with tools like appraisal calculators, vendor recommendations, and checklists to guide you through the process. Thanks for reading, and stay tuned for next month’s update!
Watch the full video below for more details.
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