Fall 2024 Real Estate Trends: Expert Insights and Strategies
As we move into the fall of 2024, there are significant trends and shifts happening in the real estate market. In this post, we’ll explore the conversation between Josh Tagg and Jay Lewis, two experienced real estate professionals, as they break down what buyers and sellers can expect during this season. From house price drops to fluctuating interest rates, we’ll cover everything you need to know if you’re considering buying or selling a home this fall.
House Prices in the Fall: What to Expect
Jay Lewis kicks off the conversation by highlighting a key trend that has been consistent year after year: house prices tend to drop during the fall season. Buyer activity usually slows down, and sellers who are motivated to sell before winter may be willing to accept lower offers. This situation creates opportunities for buyers to get a better deal, though there are some drawbacks—namely, the challenges of moving during the colder months.
As Jay points out, “If buyers are willing to make a move in the fall or winter, there are savings to be had. We can see this trend every year in historical data, with a noticeable drop in prices from January 2019 all the way through March 2024.”
The Interest Rate Factor
While house prices often drop in the fall, there’s another variable that can impact buyers: rising interest rates. Josh Tagg explains that while you might save on the purchase price of a home, higher interest rates could offset those savings. However, 2024 is shaping up to be different.
According to Josh, “We usually see interest rates rise in the fall, but this year we’re seeing something unusual. The Bank of Canada has lowered its rate three times over the last 12 weeks, and we’re seeing bond rates drop, which is pushing fixed mortgage rates down as well.”
This downward trend in interest rates could mean that buyers are in an even better position this fall compared to previous years. As Josh points out, lower rates could save buyers more over the life of their mortgage, making this an ideal time to purchase a home.
Stable or Declining House Prices?
Jay and Josh discuss the potential impact of lower interest rates on house prices. Jay speculates that with interest rates dropping, house prices might not decline as much as they typically do in the fall. He even suggests that prices could remain stable, depending on the location and type of property.
“I actually think house prices are going to hold steady, especially as we head into early spring. We’ve talked to new construction companies, and they’re gearing up for big gains in the spring market, which could lead to lower inventory and higher prices in 2024,” Jay explains.
So, what does this mean for buyers? It could be a strategic time to buy, as prices might hold steady through the fall and into the winter. However, inventory is expected to be lower, meaning there may be fewer homes to choose from.
Timing Your Purchase: Fall vs. Spring
Josh and Jay both agree that the sweet spot for buying a home could be between now and February 2024. While interest rates are dropping, inventory levels are also decreasing, and there’s likely to be less competition from other buyers than there will be in the spring.
“It’s all about timing,” says Josh. “If rates continue to drop, we could see prices start to go up sooner, which would make now a better time to buy before demand increases in the spring.”
They also discuss the possibility of a Christmas rush, where buyers try to get into their new homes before the holidays. Sellers looking to capitalize on this demand may have an opportunity to sell quickly during this time.
What Should Buyers and Sellers Do Now?
For buyers, Jay’s advice is clear: get pre-approved for a mortgage and be patient. “You need to be ready to act when the right deal comes along, but also be prepared to wait for the perfect property,” Jay says.
Josh echoes this sentiment, emphasizing the importance of pre-approval. “Getting pre-approved is crucial in today’s market, especially with inventory levels dropping. When the right house comes along, you need to be ready to move quickly.”
As they wrap up their discussion, Josh and Jay stress the importance of being prepared. Whether you’re buying or selling, understanding the market trends and timing your actions can help you make the most of this fall’s real estate opportunities.
Final Thoughts: Is Fall 2024 the Best Time to Buy?
The fall of 2024 presents a unique set of circumstances for homebuyers. With house prices potentially staying stable, lower interest rates, and fewer homes on the market, now may be the perfect time to make a move—before the competitive spring market arrives.
If you’re considering buying or selling a home this fall, reach out to us for expert guidance. We’ll help you navigate the market and make the best decisions for your situation.
