September 18, 2024 • 4 min read
In this week’s episode of the Mortgage Heroes Podcast, Andy and Will talk about recent changes in the real estate market that might just make fall the new hot season for buying and selling homes. Let’s break down the highlights of their conversation and what it could mean for anyone thinking about making a move.
Andy started by talking about how home listings have been skyrocketing lately. We’re seeing a 36% jump in active listings across the country compared to last year. Some places, like Florida and Arizona, are seeing even bigger increases—up to 72%! But, here’s the catch: even with all these homes available, prices haven’t dropped much.
Will pointed out that a lot of buyers are holding off because high mortgage rates and prices are making things less affordable.
Traditionally, summer is the big season for real estate, with everyone rushing to buy or sell before the fall slowdown. But, Andy and Will raised an interesting point—maybe this fall will be different. With so much hesitation over the summer (thanks to uncertainty in the economy and those high rates), a lot of buyers might jump back into the market now.
So, if you’re waiting for the right time, to buy a home or refinance your existing one, then this fall could be your moment!
Another hot topic was mortgage rates. A few months ago, we were seeing rates as high as 6.75%, but lately, they’ve dipped—sometimes down to 5.625% for VA loans. While it might not seem like a huge difference, those lower rates can really bring monthly payments down, and that’s helping more buyers feel confident about moving forward. It’s a small change, but it could be the nudge some people need.
One of the biggest surprises from the episode? Gen Z is stepping up in the housing market in a big way. Even with all the financial challenges, they’re outpacing Gen X and Millennials when it comes to buying homes.
Will shared a great story about a young man who bought his first home in 2020, during one of the most uncertain economic periods we’ve ever seen. It’s proof that, even when things seem tough, the dream of homeownership is alive and well—especially for younger buyers.
On the seller side, Andy and Will mentioned how homeowners are adjusting to the increase in competition. With more homes hitting the market, sellers are realizing they need to be flexible if they want to close a deal. That doesn’t mean they’re giving homes away, though—many are still sitting on a lot of equity and have low-interest rates locked in. But, if you’re buying, now could be the time to get those extras you’ve been hoping for, like closing cost assistance or small price cuts.
There’s a ton of home equity out there right now—$32 trillion to be exact. Andy and Will talked about how more homeowners are using that equity to pay off debt or cover expenses. They also stressed the importance of being smart about tapping into that equity. Interest rates on home equity loans and HELOCs are higher than they were a few years ago, but they can still be a good alternative to racking up credit card debt.
So, where’s the market headed? According to the Mortgage Heroes team, fall could be a lot busier than we’re used to seeing. As mortgage rates stabilize and home listings continue to rise, more buyers might decide to make their move before the end of the year. That said, we’re still dealing with a lot of uncertainty—especially with an election around the corner—so the market might continue to shift.
In the end, this week’s podcast was packed with insights on how the real estate market is evolving. Whether you’re thinking about buying or selling, it’s clear that there are opportunities out there if you know where to look. Fall might just surprise us all!
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