Market Update | October

Market activity continued to slow in October, with both closed homes and sales volume down almost 12% month over month. Home values, however, remained steady at $585,000, unchanged from the previous month, and up almost 3% year over year. Overall, home prices have increased by an astounding 38% since 2019. Goldman Sachs is forecasting a 1.3% appreciation nationwide in 2024, with a slight drop in transaction volume.

 

New listings were down almost 17% compared to September, but this decrease is in line with historical patterns. It is becoming more common for sellers to offer concessions to cover interest rate buydowns, with 57.9% of transactions including an average buydown of $9,390. Many new builds offer year-end incentives as well, such as permanent buydowns and package deals for appliances and landscaping.

 

In October, mortgage applications dropped by 9%, reaching their lowest level since 1995. As the market shifts towards a more balanced state, buyers have become more demanding during inspections, with more offers being contingent upon certain conditions.

 

Although financing is more expensive at these current rates, there is still plenty of opportunity in our market for those looking to buy. For motivated sellers, the property must be properly marketed, turn-key ready, and priced to sell.