Market Update

September 2024 Housing Market Recap

In September 2024, the real estate market saw some positive changes, thanks to lower interest rates from the Federal Reserve. More homes went up for sale, and prices increased slightly, showing that both buyers and sellers are trying to find some balance in the market. However, the rise in home prices is still making it hard for many people to afford a house, especially since interest rates, though lower than before, are still much higher than they were three years ago.

Here’s a breakdown of what’s happening:

1. Interest Rates and Affordability
   • The 30-year fixed mortgage rate was 6.08% in September 2024, much higher than the 3.01% rate in 2021. Even with recent rate cuts, buying a home is still expensive, and many people can’t afford it.
2. More Homes for Sale
   • The number of homes for sale increased by 31.4%, with more new listings coming onto the market. This is good news for buyers, as it gives them more options, but the market is still more in favor of sellers.
3. Home Prices Are Rising
   • The median home price went up by 5.8% to $635,000. Some areas like King, San Juan, and Snohomish counties saw the highest prices, while Ferry, Adams, and Columbia counties had the lowest.
4. Closed Sales
   • The number of homes sold in September 2024 increased by 1.9% compared to last year. However, not all areas saw more sales; 11 counties saw increases, while 15 counties saw a drop in sales.
5. Consumer and Broker Activity
   • People were still actively looking at homes, with 119,900 showings scheduled in September 2024. Many homes also qualified for programs that help buyers with down payments, which can help those struggling with affordability.

Actionable Steps

For Homebuyers:

• Be patient and shop around: With more homes for sale, you have more options. Look for homes that fit your budget and take advantage of down payment assistance programs.
• Work on your credit: Higher interest rates make mortgages more expensive. Improving your credit score could help you get a better mortgage rate.
• Consider location: Some areas have much lower prices. If possible, look at homes in regions where prices are more affordable.

For Homeowners Thinking of Selling:

• Now might be a good time to sell: With more buyers entering the market and home prices rising, you could get a good price for your home.
• Prepare your home: With more homes available, competition is increasing. Make sure your home stands out by making necessary repairs and improvements before listing.
• Price wisely: Even though prices are up, the market is starting to balance out. Be realistic about your asking price to attract serious buyers.

For Real Estate Investors (Flippers):

• Focus on high-demand areas: Certain counties are seeing more sales and higher prices. Target those areas for your next investment to ensure a quicker flip and better return.
• Watch your budget: With mortgage rates still high, buyers are more price-sensitive. Keep renovation costs under control to ensure you can sell the home at a competitive price.
• Consider timing: While the market is still strong, more homes are coming onto the market. Flip your properties quickly to avoid getting stuck with unsold inventory.

For Landlords:

• Expand your property search: With more homes for sale, now might be a good time to expand your rental property portfolio. Look for deals in areas with strong rental demand.
• Upgrade to attract tenants: As homeownership becomes less affordable, more people are renting. Consider making small upgrades to your properties to attract long-term tenants.
• Monitor rental rates: Keep an eye on rent prices in your area. With more people renting, you may be able to adjust your rates to match the demand.