The 2024 Fall Real Estate Market: What Buyers and Sellers Need to Know

As the leaves change and temperatures drop, the fall real estate market in 2024 presents a unique landscape for both buyers and sellers. Following the turbulence of the past few years, marked by fluctuating interest rates and shifting housing demand, this season is shaping up to be more stable but still influenced by larger economic trends. Here’s a closer look at what you can expect in the 2024 fall real estate market and how to navigate its opportunities and challenges.

Interest rates remain among the most significant factors influencing the 2024 housing market. After several rate hikes throughout 2022 and 2023, the Federal Reserve cut short-term interest rates by 0.50%– the first cut in four years. As of September 18th, mortgage rates are the lowest since February 2023.The average 30-year fixed mortgage rate hovers around 6.7% and is predicted to decrease with likely rate cuts in November and December, according to Goldman Sachs’ analysts.

For buyers, this means mortgage affordability remains a key concern, and those entering the market may be more budget-conscious. Sellers should be aware that while buyers are out there, they are likely more selective and financially cautious.

In recent years, the housing market was described as an inventory crunch, with demand for homes far outstripping supply in many markets. However, 2024 has seen a gradual uptick in available homes, with about 37% more on-market homes in Texas than last year, as more homeowners choose to sell amid economic stabilization and increased new home construction.

Buyers may find more housing options than in previous years, particularly in suburban and rural areas.

After years of rapid appreciation, home prices in Austin started stabilizing in 2024. While some Texas markets– Dallas, Houston, and more– remained relatively the same, rising .06% year-over-year. With the state-wide median home price of $349k, Austin remains on the higher end at a median of $548k as of August. However, the Austin-Round Rock-San Marcos metropolitan area has the lowest average close-to-list rate and leads in sold and pending sales.

The 2024 election year is expected to have a significant impact on the financial markets, as uncertainty surrounding policy outcomes typically leads to increased market volatility. Historically, election years tend to create a more cautious market environment as investors await clarity on the political landscape. This causes home prices to increase after each election year.

However, home sales have historically increased in the years following the election. Experts suggest that while presidential elections can influence the housing market, the effects are generally minor and short-lived.

For buyers, the predicted market conditions present a less heated environment. Although you may not see deep discounts, you are less likely to face bidding wars, especially in areas with higher inventory, like Austin. Sellers may need to adjust their expectations and price homes more competitively to attract discerning buyers. With the election year adding some uncertainty to the market, home prices might stabilize further, but historically, any election-related impact is short-lived. With the expected rate cuts and an average days-on-market resting at 50, sellers should remain optimistic stepping into Q4!

The 2024 fall real estate market presents a more balanced playing field compared to the frenzied activity of the past few years. Buyers have more options and face less competition, while sellers still benefit from demand but must be mindful of price sensitivity. Whether you’re looking to buy, sell, or invest, understanding the current economic conditions and housing trends will help you make informed decisions this season.