Market Update
We saw a boost in activity in August thanks to a drop in interest rates. I was surprised to see the amount of houses that received multiple offers. Even with the boost though, the market couldn’t keep up with the seasonal softening of the real estate market.
Home values depreciated 1.7% in August and active listings crept up 1.3%. One of the more telling signs of the cooling market is the 7.6% drop in closed home sales month over month. Despite the interest rate dip in August, the overall trend points toward more depreciation for the rest of the year
What will happen in September? Historically, September can be a challenging month for real estate. Buyer activity generally slows as families focus on end-of-summer trips and back-to-school routines. The Fed meets on September 18th and will almost certainly lower rates. While this is already built into interest rates currently, there will likely be another spur in buyer demand from the publicity when the rate drop actually happens. Similar to August, I doubt this boost counteracts the seasonal softening of the market.
TLDR:
Buyers: This is a great time to take advantage of the market. We’ve helped several clients acquire homes under market value recently by focusing on motivated sellers who need to close fast.
Sellers: Competition is growing. With more active listings, it’s crucial to make your home stand out. Cleanliness, professional photos, and differentiated marketing are key to grabbing the attention of buyers and getting your home sold quickly. The better your home looks, the faster it will sell in a cooling market.
