The U.S. real estate market is seeing a shift this fall. Housing inventory is rising, offering more choices to buyers, but many remain cautious about taking the plunge. According to the National Association of REALTORS® (NAR), home sales have dropped to their lowest pace since 2010, with buyers navigating high mortgage rates, elevated prices, and uncertainty surrounding upcoming economic factors. So, what’s driving this hesitation, and what does it mean for buyers and sellers?
Inventory Growth: A Silver Lining
The good news? Housing inventory has grown by 23% compared to last year, with unsold properties now at a 4.3-month supply. Homes are staying on the market longer, with the average property taking 28 days to sell compared to 21 days a year ago. This gives buyers more breathing room to make informed decisions and explore options.
For buyers, more inventory translates to reduced competition and an improved chance of finding a home that fits their needs. Whether you’re a local buyer or relocating to the area, working with a multilingual or bilingual realtor can help you better navigate the complexities of the market and make informed decisions in your preferred language.
However, the scarcity of distressed properties—only 2% of transactions—keeps prices stable in many markets. New construction is also helping, with single-family housing starts up nearly 3% in September.
Why Buyers Are Hesitant
Despite more choices, buyers remain on the sidelines. Mortgage rates hovering in the mid-6% range and persistent affordability challenges are key factors. The median home price in September stood at $404,500—down from August but still up 3% year-over-year. For first-time buyers, affordability remains a significant hurdle, with only 26% of September sales attributed to this group, one of the lowest figures on record.
All-cash buyers, however, are thriving. Accounting for 30% of sales in September, cash buyers—often repeat buyers or investors—are leveraging equity gains from recent years to bypass high interest rates. Sellers also continue to benefit from a strong market, enjoying a 55.6% profit margin on average.
Optimism on the Horizon
Real estate experts are cautiously optimistic. Builder sentiment remains high, and many predict mortgage rates will moderate as inflation eases. Sales incentives, such as rate buy-downs, are becoming increasingly common, with 62% of builders offering financial perks to entice buyers.
Additionally, 21% of REALTORS® expect increased buyer traffic over the next three months, reflecting growing confidence in the market. If you’re an international buyer or investor, Auburn International Real Estate Group offers services with multilingual agents to help you navigate these market trends effectively and with confidence.
Regional Trends
Here’s how home sales performed across regions in September 2024:
- Midwest: Sales fell 2.2%, with a median price of $306,600 (up 5% YoY).
- South: Sales decreased by 1.7%, with a median price of $359,700 (up 0.8% YoY).
- West: Sales rose 4.1%, with a median price of $616,400 (up 1.7% YoY).
- Northeast: Sales declined 4.2%, with a median price of $467,100 (up 6% YoY).
What This Means for Auburn Buyers and Sellers
In Auburn, the trends reflect national patterns. Increased inventory offers a better environment for buyers to weigh their options, but affordability challenges remain significant. Sellers, meanwhile, can still capitalize on high equity and motivated buyers, especially those paying in cash or leveraging builder incentives.
If you’re navigating the market as a first-time homebuyer, relocating to Auburn, or purchasing an investment property, working with a bilingual or multilingual REALTOR® can make the process smoother. Our team at Auburn International Real Estate Group includes experts fluent in multiple languages, from French and Korean to Chinese and German, ensuring you receive the personalized attention you deserve.
Ready to Navigate the Market?
Whether you’re buying your first home or selling to upgrade, understanding these market trends is essential. At Auburn International Real Estate Group, we’re here to guide you every step of the way. Let’s explore your options and craft a strategy tailored to your goals. Contact us today to get started!
