Why Did More People Decide To Sell Their Homes Recently?

Why Did More People Decide To Sell Their Homes Recently?

As summer ends, homeowners usually hold off on moving, leading to fewer homes being listed in the fall—a typical seasonal trend in real estate. But this year was different. Mortgage rates dropped just as the market was expected to slow, encouraging more homeowners to list their properties.

According to the latest data from Realtor.com, September saw an 11.6% increase in new listings compared to the same time last year. 

As highlighted in the green circle on the graph below, the usual September dip in new listings didn’t happen—instead, the number of homes hitting the market went up. (See graph below):

Ralph McLaughlin, Senior Economist at Realtor.com, explains that the unexpected rise in listings occurred because falling mortgage rates encouraged homeowners to move, counteracting the typical seasonal slowdown.

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

As mortgage rates dropped toward 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 gives you more fresh options to explore—rather than homes that have been sitting unsold for a while.  

However, mortgage rates have been fluctuating recently, with slight increases in the past few weeks. This volatility could deter some homeowners from selling in the near future since mortgage rates are a key factor influencing their decisions.

Why Buy Now, Rather Than Wait?

Whether you’re searching for a starter home, an upgrade, or planning to downsize, there are more homes available right now. But these fresh listings won’t last long, so it’s essential to stay updated with what’s on the market by working with a trusted agent.

However, one month doesn’t create a lasting trend. The number of homeowners continuing to sell will depend heavily on future mortgage rates and other economic factors like inflation, employment, and the Federal Reserve’s actions.

If you’re prepared to buy this fall, now could be your opportunity, while inventory levels are up.

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 mortgage rates dipped at the end of summer, more sellers re-entered the market, giving buyers a wider selection of homes. Let’s connect so you have a trusted advisor by your side to navigate these new options before they’re gone.