Last Updated on August 13, 2024
Despite continued inventory challenges and interest rates fluctuating between the high 6’s and low 7’s, the summer real estate market is moving at an accelerated pace, and we expect to see this momentum continue as students return to school this fall.
Thinking about diving into the market soon? Here’s what you can expect:
Housing Inventory
Housing inventory received a welcome bump this summer, with listings up 11.8% over the same time last year. Despite this lift in inventory, it’s still not enough to swing the pendulum in favor of a more balanced market, as our months’ supply of inventory (MSI) is still well below where it needs to be.
We should see an increase in inventory when interest rates cool, as many sellers with low rates who have been sitting on the sidelines will finally be motivated to list their homes for sale.
Interest Rates
Interest rates have been fluctuating between the high 6’s and low 7’s this year, but a recent jobs report caused rates to dip as low as 6.59%. It’s now expected for mortgage rates to continue to drop throughout the rest of 2024 and 2025, reaching 6% near the end of 2025. It is our belief that with a decline in rates, both buyers and sellers will be more willing to enter the market.
Home Prices
Supply and demand issues continue to catapult prices. In Charlotte, the average sales price for June was $523,813, up 8% year over year. While we expect to see some inventory relief next year, it won’t be enough to balance the market, so home prices will continue to appreciate.
What this means for buyers: As home prices continue to appreciate at above average rates, today is the best time to buy. Buyers can always refinance when interest rates drop.
What this means for sellers: Homes in great condition and priced right for the market are still selling quickly, and many for over asking price. Sellers should price their home correctly from the onset and make sure it’s in the best condition possible.
Even if you’re not planning to sell right now, it’s important to maintain your home, which is why we recommend a Home Physical with an Allen Tate Realtor. This is a no-cost consultation to discuss your homeownership goals, current market trends and recommended renovations to help maximize your return on investment when it’s time to sell. Visit https://www.allentate.com/homephysical.
