According to Forbes, it’s been a tough few years for homebuyers, but the real estate market is finally shifting in buyers’ favor! With increasing inventory levels, falling mortgage rates, and reduced competition, buyers are now in a stronger position than they’ve been in years. If you’re planning to purchase a home, congratulations! But before you dive in, here are five crucial things to know if you’re buying a house in the fall of 2024:
1. New Real Estate Agent Commission Practices
Nearly 90% of home buyers use a REALTOR® to purchase a home, according to the National Association of Realtors (NAR). Working with an agent ensures you have an advocate during your home-buying journey. As of August 17th, 2024, there’s a significant change in how agents are paid. Traditionally, the seller covered both their agent’s and your agent’s commissions. Now, buyers are responsible for paying their own agent’s commission.
While this might mean additional costs at closing, you and your agent can negotiate the commission. You can even ask the seller to cover part of it in your offer. Remember to read all contracts carefully and don’t hesitate to ask questions.
2. Homeowner’s Insurance and Natural Disaster Coverage
With the increase in billion-dollar weather disasters, obtaining homeowners insurance isn’t as easy or affordable as it once was. Some insurers have even withdrawn from certain states. Before you fall in love with a property, check insurance costs in your desired area. This is crucial to factor into your budget before committing to a purchase.
3. The 2024 Presidential Election’s Impact on Real Estate
While presidential elections don’t typically disrupt the real estate market, they can cause some buyers to pause their plans. This creates a prime opportunity for motivated buyers. Sellers tend to be more flexible during fall and winter, especially in an election year. Take advantage of this period to negotiate better deals and favorable terms.
4. Mortgage Interest Rates in Fall 2024
Mortgage rates peaked at nearly 8% last fall but have since declined. As of now, rates have reached a 15-month low of 6.34%, though they have slightly increased since. While it’s uncertain how much lower rates will go, it’s unlikely we’ll see the sub-3% rates of 2021 again. The best strategy is to buy now and refinance later when rates dip further. Home prices will likely rise, so acting now could save you money in the long run.
5. Home Prices & Inventory Trends
Home prices hit record highs this year, but that growth has begun to cool. Inventory levels are rising and are expected to continue through October, following typical seasonal trends. Although inventory remains below pre-pandemic levels, the reduced demand due to higher interest rates has softened price growth. However, prices are not dropping—year-over-year growth from 2023 is still expected, particularly as rates fall and demand picks up.
Is now a good time to buy? That’s for you to decide! Timing the market perfectly is nearly impossible. The best time to buy is when you’re ready and the right house is available. The current market offers buyers more power than they’ve had in years, making it a great time to consider purchasing a home. With the right agent and a solid financial plan, fall 2024 could be the perfect time to make your move. If you have any questions or need help navigating the market, reach out to Marks Realty Group.
Source: Forbes.com
