October Housing Report: Is Now the Time to Buy or Sell?

Thinking about buying or selling your home? Or maybe just curious about where the market's heading? At Nuvision, we’re committed to helping you make sense of the ever-changing housing market. That’s why we put these monthly updates together—to give you a clear view of what’s going on, backed by the latest numbers and analysis. That way, you can stay informed and make decisions with confidence, whether you're buying, selling, or just keeping an eye on the market.

Zillow: Buyers and Sellers Return as Mortgage Rates Dip

September saw both buyers and sellers returning to the market as mortgage rates dipped to their lowest in two years. The typical U.S. home value now sits at $360,999, with a typical mortgage payment of $1,760—about $40,000 more in buying power than earlier this year. But after a strong jobs report in October, some of that affordability gain has clawed back.

Southeast metro areas like Atlanta, GA have now shifted toward buyers, thanks to more new listings hitting the market. In contrast, markets on the coasts remain tighter, with fewer new homes being listed. The Southeast’s abundance of new construction is helping to ease pressure in those areas.

Redfin: Steady Demand Despite Economic Uncertainty

Even with mortgage rates back on the rise, homebuying demand has held steady. Redfin reports that pending sales increased 3.5% year over year by the end of October, the highest jump in three years. Buyers are still active, especially in desirable areas with good schools and lower taxes. That said, many are getting creative with how they finance homes, opting for adjustable-rate mortgages or shorter loan terms.

While election uncertainty is causing some to hold off, cash buyers are helping keep sales strong in some markets. In fact, pending sales and home tours are still holding up despite rising costs. As Redfin economist Chen Zhao notes, “I would have expected a bigger drop-off given the higher rates, but demand is surprisingly resilient.”

National Association of Realtors: Home Prices Climb While Sales Cool

According to the National Association of Realtors, existing-home sales slid 1% in September, down to a seasonally adjusted rate of 3.84 million. Sales are down 3.5% from a year ago, but inventory is up, giving buyers more options. The median home price continues to rise, up 3% year over year to $404,500, marking the 15th consecutive month of price gains.

Lawrence Yun, NAR's Chief Economist, highlights that buyers have more choices, and with mortgage rates lower than a year ago, there are positive signs for those still looking to enter the market. But with the upcoming election, some may hesitate before making big financial moves.

Market Watch: Sellers Adjust to Reality, Lower Prices

As Steven Thomas, a leading real estate expert, points out, we’re seeing more sellers pulling back or lowering prices as they adjust to the market reality. It’s like a garage sale—you may start out asking for a high price, but as the day goes on and the offers don’t come in, you either lower your price or take your items back home. Sellers are now having to decide whether to bring their prices down to attract buyers or pull their listings altogether.

Outlook: A Waiting Game for Buyers and Sellers

While mortgage rates and economic uncertainty are top concerns, many buyers and sellers are holding out for the right moment. In a conversation with Forbes, Ralph McLaughlin, senior economist at Realtor.com, pointed out that while home price growth may slow for now, we could see a rebound. He explained, "With mortgage rates falling to 24-month lows and a high probability of further rate reductions, there is a significant chance that the rate of home price growth will bottom out over the next month and then reaccelerate at the end of the year or early next year, as the purchasing power of homebuyers begins to reflect a more favorable rate environment."

6 Key Takeaways from October's Housing News

1. U.S. Home Values Continue to Rise, but Slower In September 2024, the typical U.S. home value reached $360,999, marking a 2.4% increase year-over-year. While home values are still climbing, the pace has slowed compared to previous years. This moderation offers some relief to buyers who have been priced out of the market, though affordability remains a challenge for many.
2. Rents Increase, Outpacing Home Values Rent prices continue to rise, with the typical U.S. rent now at $2,050, reflecting a 3.3% year-over-year increase. This outpaces the growth of home values and highlights ongoing challenges for renters. As rents increase, more renters may consider buying, but high prices and mortgage rates still pose barriers for many.
3. New Listings Are Down Slightly Year-Over-Year New listings in September 2024 were down by 1.2% compared to last year, which continues a trend of lower-than-normal inventory levels. Although this drop is relatively small, it contributes to the limited housing supply, keeping competition strong in many areas despite softening demand.
4. Typical Mortgage Payments Decline with Lower Rates The typical monthly mortgage payment in September was $1,760, reflecting a slight decrease due to lower mortgage rates. With rates dipping to a two-year low of 6.08% in late September, some buyers have gained more purchasing power, saving up to $40,000 over the past few months. However, these savings could be short-lived if rates rise again.
5. Buyers Return as Mortgage Rates Dip The dip in mortgage rates in September brought both buyers and sellers back into the market. Sales activity and new listings moved closer to pre-pandemic levels, signaling that buyers are ready to act when conditions become more favorable. However, this resurgence could be temporary, depending on future rate movements.
6. Mortgage Rates Expected to Stay Above 6% While rates dipped in late September, they have since edged back up, with the weekly average at 6.44% by mid-October. Experts predict that rates will likely remain above 6% for the foreseeable future, influenced by economic uncertainty and upcoming elections. Buyers and sellers alike may choose to wait on the sidelines until after the election, leading to a potential lull in activity.

Why We Share These Reports

We know how important it is to stay on top of the housing market, and that's why we share these updates. Whether you're thinking about buying, selling, or just staying informed, having the right information can make all the difference. We're here to help you navigate the market with confidence and make the best decisions for you and the life you build.