August 2024 Market Update
Below is a market update for the DC Metro Area for August 2024. Here are the five key takeaways: 1) Sales Activity in the region has slowed down, and it is, in fact, the slowest in 16 years. However, there are wide discrepancies across the region. 2) High home prices sideline some buyers. The median Price in August was $612,000, up 4.6% year over year. 3) Houses stay on the market longer on average. The median days on the market were 10 in August, up from eight in July. 4) Inventory has increased for seven months in a row, with active listings up 25.5% at the end of August. New listings were down 1.2 %, which means inventory growth was driven by slower sales activity. 5) Mortgage rates have been falling since early July, but the slight decline has not affected affordability in the region. Source Bright MLS
July 2024 Market Update - More Contracts are Falling Through
Anybody watching closely can see the signs of change in the housing market. Mortgage rates are finally coming down, and the Federal Reserve promised a further decrease in September. Inventory has steadily increased since the start of 2024, and homes are staying on the market longer. While it's still a seller's market in most places across the Bright MLS service area, homebuyers are starting to have more leverage. Home inspections and appraisals are becoming normal again. Sellers are more likely to offer concessions, such as help with closing costs or repairs. We're also seeing a rise in the number of contracts falling through. Some buyers aren't making it to the settlement table. In July, out of over 24,000 properties under contract in the Bright MLS service area, 15% fell through. This is a frustrating and sometimes even devastating scenario for buyers and sellers alike. Bright's recent survey of agents and brokers shows that nearly 14% of sellers had a contract fall through due to buyer financing issues. With mortgage rates close to 7% and record-high home prices, more buyers were having trouble qualifying. About 4% of sellers faced contract fall-throughs because the home didn't appraise. Setting your sales price right from the beginning with the help of a professional real estate agent is crucial. Interestingly, almost four out of 10 sellers offered credits for repairs or items found during a home inspection. Buyers now have more leverage and are more likely to ask for appraisals, home inspections, and seller concessions. These demands increase the risk of the deal falling through. Both parties must be prepared to negotiate as the market moves towards a more balanced state between buyers and sellers. Sellers should expect more buyers to make offers contingent on a home inspection. Making repairs and improvements to get the home "ready to sell" is essential. Being ready to assist with repairs or any issues found during the home inspection will also be crucial. For buyers, it's crucial to get their financials in order. Even though mortgage rates are generally falling, the rate and type of loan a buyer can qualify for varies. By understanding their loan options and taking responsibility for their financial situation, buyers will be less likely to hit any snags before closing. Source Bright MLS Are we seeing more contracts falling through?August 12, 2024, Lisa Sturtevant, PhD
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