With so much conflicting information about today’s real estate market, I’d like to share my perspective to clarify where we truly stand. Many buyers are holding off until after the election to make a move, but this may not be in their best interest. Historically, home prices tend to rise by around 5% in the year following an election, while interest rates often decrease, inviting more buyers into the market. This increased demand can drive up competition, especially with the limited inventory available. Waiting could ultimately mean higher prices and more competition. The savvy buyer would benefit from acting now rather than later.

Contrary to some beliefs, a significant drop in home prices is unlikely. For prices to decline, we’d need a large influx of inventory—something we’re not seeing. Homeowners are staying put longer, often tied to favorable interest rates, and most are only selling for significant life changes. Additionally, distressed properties, which historically have lower prices, are nearly absent. With 40% of homeowners owning their homes outright and 50% of mortgage holders having over 50% equity, the market remains stable. Since 1942, prices have only declined in six years, five of which were during the Great Recession. Outside of that, price drops have been rare and minimal.

For sellers, while the market may have slowed compared to the recent frenetic years, it remains active. The average days on the market have increased slightly—by only two days over last year. Meanwhile, sales increased by 14% compared to the same period last year, reflecting a steady buyer interest. Although rates have edged up recently, experts anticipate they’ll settle in the 6% to 6.5% range by early next year, potentially dipping into the high 5s by the end of the year.

As we approach the holiday season, remember that this time of year brings unique opportunities for buyers and sellers alike. Many choose to wait until the new year to make a move, but those who take action now may benefit from less competition and more favorable conditions. Whether you’re looking to buy or sell, having accurate, up-to-date information is essential. Please reach out if you or someone you know is considering a move – we’d be glad to help you navigate today’s market with confidence.

Wishing you and yours a very Happy Thanksgiving!