Why Did More People Decide To Sell Their Homes Recently?

Why Did More People Decide To Sell Their Homes Recently?

Homeowners typically slow down their moving plans as summer comes to an end, resulting in fewer homes being listed for sale in the fall. This is a predictable seasonal trend in real estate. However, this year, mortgage rates decreased just as the number of homes on the market usually begins to decline. So, what happened? More homeowners chose to sell, leading to an increase in available homes.

The latest data from Realtor.com shows that in September, the number of homes listed for sale rose by 11.6% compared to the same time last year.

As indicated by the green circle in the graph below, the usual September decline in homes entering the market did not occur—instead, that number actually increased (see graph below):

Ralph McLaughlin, Senior Economist at Realtor.com, explains the reason behind the unseasonable rise:

“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

As rates decreased at the end of summer, more people entered the market and decided to make their move.

What Does This Mean If You’re Looking To Buy a Home?

This means there are more fresh options available for you to choose from than you’ve had in a while—not just homes that have been lingering unsold.

However, it's important to note that mortgage rates have been volatile recently, with a slight increase in the past few weeks. This could make some homeowners hesitant to sell in the coming months. In this market, mortgage rates are largely influencing homeowner decisions.

Why Buy Now, Rather Than Wait?

Whether you're searching for a starter home, looking to upgrade, or hoping to downsize, you currently have more options available. If you find what you're looking for, keep in mind that these new listings won’t be on the market forever. Staying informed about what's available in your local area with a trusted agent is essential.

Also, remember that one month’s data doesn’t establish a trend. So, what does this mean for the future? Whether more homeowners continue to list their homes will largely depend on mortgage rates and the economic factors that influence them, such as inflation, employment, and the Federal Reserve's reactions.

With this in mind, now could be your moment, while there are more homes available—if you’re ready, willing, and able to buy this fall.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”

Bottom Line

As rates decreased at the end of summer, sellers began to gradually return to the market, providing buyers with more choices right now. Let’s connect to ensure you have a trusted advisor to help you navigate these new options before they’re all taken.