Last updated on August 13, 2024
Despite continued inventory challenges and interest rates fluctuating between 6 and 7 percent, the summer housing market is moving at a brisk pace, and we expect this momentum to continue as students return to school this fall.
Thinking about launching into the market soon? Here’s what you can expect:
Housing inventory
Housing inventory received a welcome boost this summer, with listings for sale up 11.8% compared to the same period last year. Despite this increase in inventory, it is still not enough to tip the pendulum in favor of a more balanced market, as our monthly inventory (MSI) is still well below where it should be.
We should see an increase in inventory when interest rates cool, as many low-rate sellers who have been on the sidelines will finally be motivated to list their homes for sale.
Interest rates
Interest rates have been fluctuating between 6 and 7 percentage points this year, but a recent jobs report sent rates down to 6.59%. Mortgage rates are now expected to continue to decline throughout the remainder of 2024 and 2025, reaching 6% near the end of 2025. We believe that with rates declining, both buyers and sellers will be more willing to enter the market.
Housing prices
Supply and demand issues continue to push prices up. In Charlotte, the median sales price in June was $523,813, up 8% from the same month last year. While we expect to see some relief in inventory next year, it won’t be enough to balance the market, so home prices will continue to appreciate.
What this means for buyers: As home prices continue to rise at above-average rates, now is the best time to buy. Buyers can always refinance when interest rates drop.
What this means for sellers: Homes in excellent condition and priced appropriately for the market still sell quickly, and many for above asking price. Sellers need to price their home correctly from the start and make sure it is in the best condition possible.
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