October 2024 Real Estate Market Update: Trends & Insights

The real estate market is cooling off—sort of. Fall is typically the second-best time to sell a home, but this October tells a slightly different story. With inventory dropping, average prices slipping, and homes lingering a little longer on the market, we’re seeing some unusual trends. But it’s not all bad news. If you’re considering buying or selling, there’s plenty to unpack. Let’s break down the latest data and what it means for you.

Current Inventory and Pricing Trends
Right now, there are 862 homes on the market, down slightly from last month’s 886. The average list price has taken a hit, now sitting at $480,000 compared to $500,000 just a month ago.

And it’s not just the prices dropping—homes are taking longer to sell. Average days on the market have stretched to 34 days, up from 27 last month. While these shifts might seem minor, they hint at a market that’s slowing its roll after a frenetic pace.

Homes Under Contract: The Dip Continues
The number of homes going under contract also dipped. Last month, 555 homes went under contract at an average price of $430,000. Compare that to the previous month’s 522 homes at $450,000, and you’ll see a steady decline in both volume and pricing.

But if we zoom out, there’s still some consistency. The average closed price for homes sold in October 2024 is $431,000—exactly the same as the month prior. The catch? Fewer homes are selling.

The Year-Over-Year Story
Let’s talk October 2024 versus October 2023. The numbers show a clear trend: home prices are still climbing. Last October, the average closed price was $405,000. Fast forward a year, and it’s jumped to $431,000. That’s a $26,000 difference—a solid indication that we’re still in a seller’s market despite some seasonal slowdowns.

Why Are Things Shifting?
It’s all about supply and demand. Inventory remains low, which means sellers still hold the cards. However, rising interest rates are making buyers more cautious. Speaking of rates, here’s a silver lining:

Paul Zalich from Rate Mortgage dropped by recently with some encouraging news. The Federal Reserve is expected to cut rates several times next year, aiming to bring them down into the 5% range by the end of 2025. Translation? Buyers who lock in today’s 6.5% rate can likely refinance at a lower rate down the line.

What Does This Mean for Buyers and Sellers?
If you’re a seller, it’s still your market. Prices remain strong, and homes that are well-priced and staged are selling at 100% of their list price.

Buyers, don’t despair. While interest rates might be a little steep right now, the opportunity to refinance next year is a game-changer. Plus, with fewer homes going under contract, you might have a bit more negotiating power than you’d expect.

Conclusion
The October 2024 real estate market is a mixed bag of subtle slowdowns and steady appreciation. Sellers still have the upper hand, but buyers shouldn’t be discouraged. With rate cuts on the horizon, now could still be the perfect time to make your move.

Got questions or need more insights? Stay tuned for more updates and tips to help you navigate the market.