Housing Market Trends October 2024 | Residential Snapshot

Welcome to the Housing Market Trends October 2024 monthly update from Homes for Heroes. This report focuses on the residential real estate housing market. We listen to the experts and boil down what they have to say to assist you, our heroes, with decision making regarding buying a home, selling your home, or refinancing your mortgage.

Housing Market Trends October Key Takeaways

The housing market is ever-evolving. Economic factors, government policies, interest rates, and even socio-cultural shifts can play a role in how the market behaves. That said, here are some housing market trends for October to help keep you informed as you determine what’s best for you.

• Mortgage Rate Trends – Mortgage rates have been dropping since August, and further reductions are possible following the Fed cutting rates by 0.50% on September 18th.
• Home Inventory Trends – Inventory continues to increase, but falling mortgage rates and the recent Fed rate reduction may trigger more home buyers to enter the market.
• Home Pricing Trends – Home prices are continuing to appreciate year-over-year, and they are expected to continue appreciating, but at a slower rate moving into 2025.
• Save with Homes for Heroes – The Homes for Heroes program provides significant savings to community heroes, with an average savings of $3,000 after buying, selling, or refinancing a home with their local specialists. Sign up today to learn more and a member of the team will contact you.

Housing Market Trends October 2024 in Detail

Mortgage Rate Trends

The much anticipated meeting of the Federal Reserve took place on September 18th and as many predicted, the Fed reduced the federal funds target rate. This is not an interest rate, but it is a factor used in determining mortgage interest rates.

Back on July 31st, the Fed held the federal funds target rate at 5.25%-5.50%. But, it was strongly stated that in September, there was a good chance rates will come down, depending on how inflation data cooperates until the Fed meets.

Since the Fed made that statement, the market responded positively and mortgage interest rates began to steadily drop throughout August and into September. Freddie Mac’s Primary Mortgage Market Survey line graph above shows the decline, and as of September 26, 2024 the weekly 30-year fixed rate mortgage rate came in at 6.08% and the 15-year fixed rate mortgage landed at 5.16%.

This recent decline in mortgage interest rates has been welcomed news from potential home buyers, giving them more purchasing power in a market where home affordability has been a primary issue.

On September 18, 2024 the Fed did reduce the federal funds target rate by 0.50%. On the following day, U.S. markets climbed to record highs. And, many people on the fence about borrowing money, became more inclined to do so.

Now that the Fed has reduced the federal funds target rate, hopefully we will continue to see mortgage rates trend down throughout the rest of 2024. However, many industry experts say that most of the reduction happened pre-Fed announcement in anticipation of a rate reduction happening in September.

That said, if you were one of the potential home buyers on the fence, maybe there is new found confidence that things are potentially moving in the right direction. The recent rate reductions in mortgage interest rates may open doors for you to enter the housing market and begin the process.

According to Lawrence Yun from NAR, “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitely rising on a national basis.”

This is good news for buyers. Not great news for sellers as the market is moving to a more “normal” or balanced playing field. The market is not balanced, and it is still skewed to the sellers advantage, but things have changed from 1-2 years ago and it continues to move toward a more balanced market.

If you are thinking about getting into the housing market, remember to consider working with Homes for Heroes real estate and mortgage specialists to help you through the process. We will save you significant money when you close on a home with our specialists. On average you can save $3,000 if you buy a home, and $6,000 if you buy AND sell a home.

Sign up today and a member of our team will reach out to answer your questions, and to find out how we can best serve you.

Home Inventory Trends

The bar chart above shows how unsold housing inventory has been trending in 2024, through July. You’ll see in July it took a slight dip.

However the National Association of Realtors (NAR) reported the inventory of unsold existing homes increased 0.7% in August 2024, versus the previous month of July, continuing the increase in inventory trend this year.

Some experts believe the recent decrease in mortgage interest rates is likely helping home buyers find more affordable home purchasing options.

So, if the interest rates continue to go down, more home buyers may get back into the market, and that could directly impact inventory levels. This is definitely something to watch, especially since the Fed decreased the federal funds target rate by 0.50% on September 18th.

Only time will tell, but we hope this report has given you more than you had before reading it.

Home Pricing Trends

Home prices continue to appreciate. The bar chart shows the monthly year-over-year change in home prices according to Case-Shiller, beginning in January 2022 – June 2024. You can clearly see the dramatic year-over-year change in home prices through 2022. It reset in mid-2023, and has continued to show year-over-year appreciation, but at a much more gradual level of 3-5% through August 2024.

The National Association of Realtors (NAR) reported that national home prices increased 3.1% in August 2024, versus August 2023. And, that marks the 14th consecutive month of year-over-year national median existing home sales price gains.

This is great news for homeowners worried about loss of recent equity gains for their current home, and also for would-be home sellers who want to capitalize on the recent price increase to leverage that gained equity for other financial priorities.

However, this is not great news for home buyers who are still struggling to find affordable housing options in today’s market, even with recent reductions in mortgage rates.

That said, it is good to know that leading market experts are expecting the rate of home price increases to slow a bit. That is better news than if the rate of increase were projected to be higher in 2025.

So, when it comes to national home prices specifically, now is the best time to buy a new home versus later, before the home price increases. Again, this is nationally, so be sure to understand your local market home pricing trends. Here are two reasons, based on national home price forecasts, why purchasing now versus later may be your best option:

The home is likely more affordable now than it will be in one year based on market expert forecasts of further national home price appreciation in 2025.
After you purchase the home, the home’s value is expected to increase in the next year, therefore giving you the home buyer more home equity in one year’s time.

If you’re deciding whether to enter the market to purchase a home and would like to better understand your current local market, sign up to speak with a member of the Homes for Heroes team. They will answer your initial questions, and when you’re ready, connect you with our local real estate and/or mortgage specialist to begin the process.

Receive an Average of $3,000 from Homes for Heroes

Homes for Heroes assists firefighters, EMS, law enforcement, active military and veterans, healthcare workers and teachers; with buying, selling and refinancing their home or mortgage. But if you work with our local real estate and mortgage specialists to buy, sell or refinance; they also provide significant savings after you close on a home or mortgage. We refer to these savings as Hero Rewards, and the average amount received after closing on a home is $3,000, or $6,000 if you buy and sell!

Simply sign up to speak with a member of the team. There’s no obligation. After you sign up a member of our team will contact you to ask a few questions and help you determine the appropriate next steps for you.

When you’re ready, we will connect you with our local real estate and/or mortgage specialists in your area to assist you through every step of the process, and save you money when it’s all done.

It is how Homes for Heroes and our local specialists thank community heroes like you for your dedication and valuable service.

LIST OF SOURCES:
https://www.realtor.com/research/data/
https://www.realtor.com/research/august-2024-data/
https://www.nar.realtor/newsroom/existing-home-sales-advanced-1-3-in-july-ending-four-month-skid
https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-20-city-composite-home-price-nsa-index/#news-research