Why More Homeowners Are Selling Their Homes This Year
As summer wraps up, it’s common to see fewer homes listed for sale. Typically, real estate activity slows down during the fall, with fewer homeowners deciding to sell. However, this year broke that trend. Instead of declining, the number of homes hitting the market actually increased, thanks to a dip in mortgage rates.
According to Realtor.com, the number of new home listings in September rose by 11.6% compared to the same time last year. So, why did more people decide to sell their homes recently?
Why Homeowners Decided To Sell in September
Normally, the number of homes for sale drops in September, but that wasn't the case this year. As the graph from Realtor.com shows, this September saw a notable uptick in homes coming to market. According to Ralph McLaughlin, Senior Economist at Realtor.com, this unseasonal rise was largely due to the decline in mortgage rates in mid-August, which encouraged more homeowners to sell.
In short, when mortgage rates came down, it sparked renewed interest in the market. Homeowners saw an opportunity to sell at more favorable rates, leading to more listings at a time when we typically see fewer.
What This Means If You’re Looking To Buy a Home
For buyers, this recent surge in home listings is good news. It means there are more fresh options available than usual, and you’re less likely to be stuck choosing from properties that have been sitting on the market for a while. This creates more opportunities to find the right home for your needs.
However, mortgage rates have been volatile lately, ticking up in recent weeks. This could affect how many homes are listed in the coming months, as higher mortgage rates may discourage some sellers from entering the market. That’s why it’s crucial to act while there are still fresh listings available.
Why You Should Consider Buying Now
If you’re ready to buy a home—whether you’re upgrading, downsizing, or looking for a starter home—you have more options right now than at many points in recent history. But these new homes won’t stay on the market forever. As competition remains strong, staying in tune with the latest listings in your area is vital.
While one month of increased listings doesn’t guarantee a long-term trend, the future of housing inventory will largely depend on economic factors like mortgage rates, inflation, and decisions from the Federal Reserve.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes: “The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
Bottom Line
This fall presents a unique opportunity for buyers as more homes are coming to the market due to a temporary dip in mortgage rates. If you’re thinking about buying, now is the time to explore these new options before they’re gone. Let’s connect to ensure you have the guidance you need to navigate this market shift and find your perfect home.
