Understanding the Latest Trends in the Real Estate Market

If you're a prospective homebuyer, the tides of the real estate market might be shifting in your favor. According to the latest data from the National Association of REALTORS® (NAR), October marked the third consecutive month of increased home sales, showcasing the resilience of buyers despite elevated mortgage rates. Here's what you need to know about these promising trends and how they could impact your home buying journey.

Contract Signings on the Rise

In October, contract signings—a leading indicator of future home sales—rose by 5.4% compared to the same time last year. This momentum follows nearly two years of suppressed home sales, signaling a growing confidence among buyers. The NAR also reported a 3% annual increase in existing-home sales, marking the first yearly gain in over three years.

What’s driving this shift? Continuous job growth and an increase in available housing inventory are playing pivotal roles. Lawrence Yun, NAR’s Chief Economist, notes, “Homebuying momentum is building. More housing inventory and job gains will be the drivers that boost home sales.”

More Choices for Buyers

Good news for those browsing the market: housing inventory is up 19% compared to last year. This increase offers buyers more options to find their dream homes. Additionally, buyer activity has increased by 7%, as measured by lockbox opens, suggesting growing enthusiasm to explore available properties.

Adapting to the New Mortgage Landscape

While mortgage rates remain elevated, with the 30-year fixed-rate mortgage averaging 6.84% last week, buyers seem to be acclimating to this "new normal." Yun predicts that consumers are starting to accept rates in the 6% to 7% range. For many, these rates are no longer a deterrent, especially as the job market remains robust and housing supply improves.

What This Means for You

If you've been holding off on buying a home, now might be the time to re-enter the market. With more inventory, stabilizing mortgage rates, and increased market activity, conditions are gradually becoming more favorable. However, competition is also increasing as more buyers gain confidence.

Tips for Prospective Buyers:

1. Work with a Real Estate Professional: A knowledgeable agent can guide you through the complexities of the current market and help you act quickly on new listings. Our team of buyer’s agents has years of experience working in the area and would love to help you identify the perfect property. 

2. Get Pre-Approved: Locking in a rate now could save you money and make your offer more attractive to sellers.

3. Stay Informed: Keep an eye on regional trends, as market conditions can vary significantly by location.

The bottom line? Housing momentum is building, and opportunities are growing for those ready to make their move. By staying proactive and informed, you can position yourself to find the perfect home, even in a shifting market.

To learn more about these housing trends take a look at this article from the National Association of Realtors.