As mortgage interest rates continue their fall, under contracts are up by 50% over the same week 2023, new listings up by 20% and buyer activity remains consistently elevated.  Inventory remained steady at 10,134 homes for sale and seller concessions dip slightly.  

This activity is all interest rate driven, opening up two things:

  • Sellers feel more comfortable selling because they can find a replacement home with a replacement interest rate and payment closer to what they have today.
  • Buyers on the lower end of the price range feel as though homeownership is more affordable.  

For real estate agents, this is a significant opportunity to educate the move up buyers and younger people in their database about the opportunity of the moment.  Declining interest rates, elevated inventory and sellers who are willing to negotiate.

Are sellers willing to negotiate?  The numbers would say so.  The average listing price for a home last week was $753,425.  The average price reduction of about $10,000 brought the list price down to $743,034.  But the average sold price last week was $670,017.  

Is that smaller property being sold or buyer negotiation?  Likely both.  

As rates have fallen, smaller properties have started selling.  While subtle, we see a direct correlation between the interest rate increase of 2022 and larger properties selling, and conversely, as rates began their decline in May of this year we see an increase in the number of smaller properties selling, bringing down the median square footage of a home sold.  

While a slight decline, concessions remain elevated at $6,148 per contract and inventory is almost 50% higher than last year.  

Days on market, while volatile week by week, continues its climb ending last week at 43.97 days on average and buyer patience continues as it takes 29 showings on average for a seller to go under contract.