October Real Estate Market Update: Is the Holiday Slowdown Starting Early This Year?
As we move through October, the big question on everyone’s mind is whether the holiday slowdown in real estate has arrived early this year. Historically, the market tends to cool off as we approach Thanksgiving and Christmas, but we are seeing that shift a little earlier this year! Let’s break it down.
October Market Stats: Inventory and Demand
First, let’s look at where we stand today. One of the key trends we’re seeing is an increase in inventory. More homes are hitting the market than are being sold, which indicates a shift towards a balanced market. This trend has been building for a few months now, with demand not quite keeping pace with the number of homes available. However, the gap is still small, and we’re not seeing an overwhelming surge of new listings compared to sales.
One of the most telling statistics is the average days on market. Homes are now sitting on the market for an average of 34 days, a significant change from 2 years ago when many homes sold within the first weekend. While there are still properties that sell quickly—especially those priced well, presented beautifully, and in desirable neighborhoods—the overall trend is that homes are taking longer to sell.
A Balanced Market
Currently, we’re in a balanced market. Some homes are still selling over asking price, but more are selling under asking with negotiations becoming more common. This signals a shift from the red-hot seller’s market we’ve experienced over the past couple of years, into a more balanced market.
Has the Holiday Slowdown Arrived Early?
So, has the holiday season slowdown come early this year? The answer is yes. October has seen fewer sales than we typically expect, and we’re starting to feel the usual holiday lull. In past years, the market would begin to cool in November and December, but this year, it seems the slowdown has kicked off a bit earlier. The number of sales happening in October is lower than in previous years, signaling that buyers and sellers are beginning to pull back.
Impact of Interest Rates
Last month there was hope that the Fed’s half-point interest rate cut would reignite the market, and for a short time, we did see a slight uptick in buyer activity. However, that momentum has since waned, and we’re seeing fewer sales as we move into the holiday season. While demand has pulled back, we still don’t have enough inventory to cause significant price drops, though days on market may continue to rise.
Looking Ahead: What’s Next?
Looking forward, it’s likely that the market will stay slower through the end of the year. The Fed may make additional rate cuts, which could help spark more activity in early 2025. We expect that by January or February, the market will start to heat up again as the holiday season wraps up and more buyers and sellers re-enter the market.
Advice for Buyers and Sellers
For buyers – Now is an ideal time to get active in the market. With fewer buyers during the holiday season, there’s less competition, giving you a better chance to find the perfect home without the stress of bidding wars. Investors often capitalize on this quieter period to secure great deals.
Sellers – patience is key. Expect that your home might sit on the market a little longer than usual, so it’s crucial to position your property as the best choice for buyers. Make sure your home is priced competitively, shows beautifully, and is fully move-in ready. Excellent marketing, including professional photos, is more important than ever to attract potential buyers. And we’re here to help every step of the way!
If you have any questions or need advice on navigating the current market, don’t hesitate to reach out to me or someone on the True Local Realty Group team. We’re here to help you make the best decisions for your real estate goals.