What's Up With Real Estate?

National news and local views for the Week ending Friday, October 4, 2024

Welcome to this week's talking points on real estate market trends. As always, we are here to answer your questions and concerns about buying, selling, or renting a home on Florida's Treasure Coast. Eric Slifkin, Broker Associate

National Real Estate News

Inventory keeps building

The nation's active inventory (listed homes excluding those already under contract) rose 3.5% month-over-month (+34% year-over-year) to 941,000. That's the highest inventory figure since January 2020, but it's still 23% below September 2019 (pre-COVID). That said, eight states (TN, ID, FL, TX, etc.) now have inventory levels that are HIGHER than pre-COVID, which could put pressure on prices there. [Source: Realtor.com]

Nationwide Active Listings

Stay or jump ship?

The incredibly tight job market during the pandemic made it very lucrative for employees to change companies. The graph below shows the premium (higher annual wage growth) generated by jumping ship versus staying. But that premium has declined massively lately, as companies have reduced hiring plans and the unemployment rate has risen. [Source: ADP]

Annual Wage Growth Premium: Switching vs. Staying

Finance

Rates drift higher

Average 30-yr mortgage rates have increased 14 bps (0.14%) since September 17, the day before the Fed's big 50 basis point (0.5%) rate cut. Why? First, much good news had already been "priced in" before the Fed decision. Second, the economic and jobs data have been mixed since then. The market now expects a further 25 basis point cut on November 7. [Source: Mortgage News Daily, CME]

Average 30-yr Fixed Rate Mortgage

Local Real Estate News

Here come the condos. During COVID, multifamily construction reached near-record levels. Apartments and condos are now being delivered at a pace not seen since 1975, with 60% being built in the South, including Texas and Florida. This could continue to pressure rental rates and selling prices in those areas. [Source: Census Bureau]

A mini rally? The Fed's rate cuts could significantly impact the real estate market. Meanwhile, transaction volumes for new and existing homes remain subdued. However, with the inventory of homes for sale on the rise, buyers are gaining some leverage in negotiations.

Ready for takeoff: Treasure Coast International Airport has received the green light to offer commercial passenger service on aircraft with more than 30 seats. [Source: TCPalm]

Market Trends

Thanks for visiting this Week's talking points on real estate market trends. We are here to answer your questions and concerns about buying, selling, or renting a home on Florida's Treasure Coast, and we are always happy to meet with you to discuss your wants and needs with no obligation. -Eric Slifkin, Broker Associate at Keller Williams Realty Contact us today!

Real Estate Resources

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Home Buying Myths

1. A 20% down payment is necessary to secure a mortgage. FALSE! Recent first-time buyers have made an average down payment of just 8%, and programs are available for eligible applicants (such as VA, USDA, etc.) with even lower minimum down payments.

2. Your only cost will be your mortgage payment. When considering homeownership costs, buyers often think of their main expense—their mortgage—and fail to go beyond that. It's important not to forget property taxes, HOA fees, insurance, etc.

3. Looking for a house is the first step in homebuying. Before house hunting, ensure you know what you can afford, check your credit, get pre-approved for a mortgage, and find a great agent to work with.

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Home Selling Tips

Try these tips to unlock the full potential of your home sale and maximize your property's value.

• Clear our clutter
• Put rooms back to their intended purpose
• Update appliances
• Invest in value-adding improvements
• Highlight the positive with professional photos
• Set the right asking price

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The market is shifting! Don't miss out on the best deals for home buyers, or sell your house quickly with us. Expert marketing ensures that your home is seen by more potential buyers, resulting in a faster sale at a higher price. We'll work with you to buy a home or sell your own home on your terms without hassle or stress.

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