Stockberger: As mortgage rates fall, this fall presents unique real estate opportunity
Sept. 16, 2024
This paid piece is sponsored by Amy Stockberger Real Estate.
By Amy Stockberger
Fall is one of my favorite seasons, and one reason is that we get to host one of my favorite client events—Date Night at Rough Cut Social. It’s such a fun way to connect with clients and give them a chance to enjoy a night out, axe-throwing, drinks, and a great time together. This event is one of the many ways we celebrate our clients year-round through our Lifetime Home Support™ model, where we go beyond just buying and selling homes and create lasting relationships.
As you know, the past few years have been challenging for homebuyers. But this fall, the market conditions are finally aligning in favor of buyers in many areas. One of our trusted lending partners was even quoting a 5.625 percent 30-year mortgage and 4.875 percent 15-year mortgage just this past Friday. That’s a significant dip compared to what we’ve seen lately.
While historically, spring has been the “ideal” time to buy a home, this year, fall is creating a unique opportunity. Realtor.com even named the week of Sept. 29 – Oct. 5 as the best week to buy a home in 2024. With lower mortgage rates, peak inventory, and less competition, this season is shaping up to be a prime time for homebuyers. Let’s break down why.
#1—Lower mortgage rates
After months of steady increases, mortgage rates have dipped to their lowest levels since February 2023. As of mid-September, rates were hovering around 6.11 percent. This offers buyers a golden opportunity to lock in more favorable rates and save hundreds on their monthly payments. Just imagine the difference in monthly payments if you lock in a 5.625 percent rate today! But, as always, rates are unpredictable, and they could rise again quickly—so acting fast is key.
#2—Peak inventory levels
In many markets, fall brings a surge in inventory, offering more choices for buyers. Nationally, the number of homes for sale is up over 22 percent compared to last year. Realtor.com predicts that the first week of October will have 37 percent more active listings than at the start of the year. In our local market, we’re also seeing a rise in inventory, which means more options for you to find the perfect home without the pressure of limited choices.
In the Greater Sioux Falls area, housing inventory trends are in line with national trends. New listings are up 9.6 percent year over year and the average days on market are up 9 percent+.
#3—Less competition means more negotiating power
Buyer demand traditionally cools off in fall and winter, and this year is no different. Demand is expected to drop by nearly 30 percent compared to the spring peak, giving buyers more negotiating power. Whether you’re looking to offer below the asking price or negotiate on closing costs, this reduction in competition can give you an edge.
#4—Price reductions are more common
With more homes on the market and less competition, price reductions are becoming more frequent. In August, nearly 26 percent of listings saw price cuts, compared to just over 23 percent last year. This is an excellent opportunity for buyers to find deals or negotiate a lower price on homes that have been sitting on the market. Redfin also reports that fewer homes are selling above list price, so you have more room to negotiate.
At Amy Stockberger Real Estate, we’re here to help you navigate this market with our Lifetime Home Support™ model. This means we’re not just here for you during the buying process, but we continue to support you long after you’ve closed on your home. From providing free access to our moving trucks, party and tool equipment, to offering exclusive discounts, we’ve got you covered.
We even have a system for helping you with the maintenance and prevention of one of your biggest assets with our amazing Home Support Team partners. Whether you need help with regular home upkeep, repairs, or expert advice on maintaining your property, our partners offer preferential pricing and top-notch service to make homeownership smoother and stress-free.
If you’re thinking about buying a home, waiting until spring could mean higher rates, fewer options, and stiffer competition. This fall is offering a rare combination of lower mortgage rates, more inventory, reduced competition, and increased negotiating power. If you’re interested in learning more about your options, reach out here for a discovery call.
Visit Amy Stockberger Real Estate, or give us a call at 605-376-6780 to get started.
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