Yes, you red that correctly. It is National Punctuation Day. I never new it existed until two day. So in honor of it, I will pen a satirical blog littered with punctuation, grammar, and sentence structure issues. While we all strive to be perfect, mistakes can happen.
So what is up with The real estate market?
It is currently close to the end of septemer, with a quarter of a year left to define the market. twenty-twenty four has left its mark. We have scene the top of the market occur in 2022-23 and certain segments of the market are starting to behave differently than they have in the past. The upper end of the market has seen a slow down. Not a grind to a hault, but the pricing is coming down, or at least stopped increasing And it takes longer to get an offer, so “Days On The Market” is stretching out to a longer period.
What is still active?
The mid point of the market is still moving. By the midpoint, I reference the segment of the market that sandwiches either side of the median transaction price. This segment of the market is still active. Demand is strong, and supply remains lower than the market can handle. This allows sellers to still garner some good pricing, albeit not at crazey levels like we saw in 2021-22.
Will rates help?
As I am sure any real estate enthuist could not miss, the Federal Reserve, aka “The Fed”, lowered the discount rate. While this did not really help mortgage interest rates, as this Fed move was widely anticipated by lenders. However, this could signal a trend toward more fed easing, and lower interest rates in the future. Historically, lower interest rates have helped with pricing in the real estate market. Should rates continue their move downward, this could help the supply problem. Lower rates will help buyers to be able to afford more in terms of their lending needs. But Lower rates will also help that seller consider giving up that low rate they locked into years ago. Perhaps this will give them the impetus to list and either upside or downsize. Thus assisting the supply problem.
How can I help?
While the market has changed, pricing is no longer in a runaway fashion. And the industry has changed by requiring buyers to have a signed Buyer Agency Agreement. The industry has also made it a bit more challenging for sellers to naivate buyer agency compensation. These and many other things are well worth a conversation before wading into the waters of the real estate market. And getting good solid advice from a seasoned professional like myself can be to your benefit. Let’s get you set up for success.