Real Estate Market Trends: November 2023 vs. November 2024
Let's dive into the changes in the real estate market over the past year. If you've been following the news or have heard chatter about interest rates, you may have noticed a significant trend: lower interest rates have increased demand, leading to more home sales despite rising prices. Here’s a closer look:
Key Numbers
- Average Purchase Price: Increased from $540,115 in November 2023 to $590,362 in November 2024—a 9.3% jump!
- Sales: Rose from 300 homes sold last year to 341 this November, marking a solid 13.7% increase.
- Interest Rates: Dropped from 5.00% to 3.75%, a major advantage for buyers!
- Average Months Supply: Decreased from 2.5 to 2.2 months, indicating a tighter inventory. - Homes for Sale: Fell from 809 to 771, making the market even more competitive.
The Impact of Lower Interest Rates
The most significant factor influencing the market is the drop in interest rates from 5.00% to 3.75%. Here’s why this matters: For buyers financing a $400,000 home, this reduction in rates means savings of over $300 per month compared to last year. Lower borrowing costs have encouraged more buyers to enter the market, contributing to a nearly 14% increase in sales.
Why Are Prices Still Rising?
Despite the lower interest rates, home prices continue to climb. Here's the breakdown:
- Reduced Inventory: We have 48 fewer homes listed compared to last year, resulting in increased competition among buyers.
- Strong Demand: With lower rates, buyer enthusiasm is high, giving sellers the upper hand. This combination of high demand and limited supply has led to an almost $50,000 increase in the average purchase price.
What Does This Mean for You?
- For Buyers: Lower interest rates lead to more manageable monthly payments, despite higher prices. However, be prepared for competition—acting quickly and making strong offers will be essential!
- For Sellers: You’re in an excellent position! Rising prices and strong demand mean you can maximize your return. With fewer homes available, competition is less intense.
What’s on the Horizon?
As we head into 2025, the market's direction will largely depend on interest rates and the availability of homes. If rates remain low, demand will likely stay strong, potentially driving prices even higher. However, an increase in inventory could relieve some pressure on buyers and moderate price growth.
In Conclusion
This past year has been quite a journey for the housing market. Lower interest rates have kept buyers engaged despite rising prices, resulting in a notable increase in sales. If you're considering buying or selling, staying informed and ready to act will be crucial to navigating this market. Knowledge is power, and I have the expertise to guide you every step of the way!
Have questions and want to discuss your next move?
Let’s connect—I could talk about real estate all day (and I usually do)!
~ Real Estate & More With Kor!
