Q3 Market Update: Rising Home Inventory and Falling Interest Rates

We’ve observed a positive shift in the market with a slight increase in inventory. More new homes are being listed, primarily because sellers, who have been patient, are now ready to make a move. This increase in listings is great news for home buyers, and we continue to see strong demand on that front. As a result, more purchase agreements are coming together, and our clients are successfully securing homes through our efficient pre-approval process and Peace of Mind guarantee.

Regarding interest rates, we’ve seen fluctuations between 7% and 7.25%. Currently, rates are in the high sixes. We anticipate a gradual decrease, potentially dropping by another eighth to a quarter percent by the end of the year. Looking further ahead, we are hopeful for a reduction in interest rates of up to 1% within the next 12 to 18 months. This projected decrease in rates strengthens our belief that home values will continue to rise.

Historically, we’ve seen about a 4% annual rate of return on home values. However, we are optimistic that the next few years could bring higher than normal appreciation rates. This presents a promising outlook for homeowners and potential buyers alike.