As we enter August, the real estate market isn’t as hot as the weather we’ve been experiencing this year. Despite this, it remains a strong seller’s market, though the intensity has cooled slightly compared to earlier in the year. You may recall from previous newsletters that we saw sight-unseen offers significantly above the list price and multiple offers waiving all contingencies. While sight-unseen offers have become less common, we still see multiple offers, though it may now be only two or three rather than five to ten. Additionally, buyers are now able to negotiate contingencies, which I believe is a positive development.

With kids heading back to school soon, families might consider moves aligning with school district boundaries. This time of year often prompts discussions about relocating to be closer to schools or settling into a new area before the academic year kicks off. Whether you’re contemplating a move or thinking about selling, this seasonal transition can influence housing decisions for many families.

Looking ahead, there are several factors that might influence the market this August. First, Joe Biden’s withdrawal from the presidential race and Kamala Harris, now the Democratic nominee to run against Donald Trump could affect buyers’ decisions. We’ll have to watch how this impacts sales trends compared to previous years. Despite inflation dropping to 3%, Federal Reserve Chair Jerome Powell has opted not to lower the Fed rate, which could have future implications. There is speculation about a potential rate cut in September, followed by additional cuts in November and December. While this seems aggressive, we will see how it unfolds. Mortgage rates did decrease steadily in July, now standing in the high 6% range, but this didn’t result in a surge of sales, which was unexpected. It might be attributed to the seasonal slowdown we typically see in the summer months, especially now that we are past the pandemic period.

I will provide updates on August’s sales next month, so stay tuned for more information. Additionally, mid-August brings changes in how buyer agent compensation is advertised, which could impact sales, buyer representation, and seller decisions regarding compensating buyer agents. These are indeed interesting times, and I will keep you informed about these developments.

As always, I am here as a resource for you, whether you are considering selling or buying. Feel free to reach out to discuss your situation in more detail. Additionally, if you purchased a home in the last year, now might be a good time to refinance your loan! Contact me to discuss your interest rate options. Stay cool!