Why Did More People Decide To Sell Their Homes Recently?
Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market.
The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year.
As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.
What Does This Mean If You’re Looking to Buy a Home in Chattanooga with Lawrence Team Homes?
More homes are available now in Chattanooga, which means you have a wider selection of fresh options to explore – not just properties that have been sitting on the market unsold. With The Lawrence Team, top real estate agents in Chattanooga, you'll get the guidance you need to navigate this dynamic housing market.
However, keep in mind that mortgage rates have been volatile lately. They’ve ticked up slightly in recent weeks, which could impact how many homeowners decide to list their properties in the coming months. Right now, mortgage rates are a significant factor in determining whether people are comfortable with selling, so that’s something to watch.
Why Buy Now Instead of Waiting?
If you’re looking to buy a home in Chattanooga – whether it’s your first home, an upgrade, or a downsizing option – you currently have more choices than you’ve had in a while. But remember, these new listings won’t last forever. Staying updated on what’s available is crucial, and working with The Lawrence Team can ensure you don’t miss out on any fresh options in the area.
Remember, one month’s inventory increase doesn’t make a trend. The number of new listings in the future will largely depend on what happens with mortgage rates and the broader economy, including factors like inflation, employment, and the Federal Reserve’s actions. So, if you’re ready to buy, this fall might be your best chance, while more homes are available.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains it well:
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
Bottom Line
As mortgage rates came down at the end of the summer, more sellers have returned to the market, which means buyers have more options. Connect with The Lawrence Team to ensure you have a trusted advisor on your side to help you explore the new opportunities in Chattanooga real estate before they’re all gone!
