October 2024: Falling Home Prices, Rising Inventory

In October 2024, the U.S. housing market shows a significant shift, with home prices falling 0.7% and the number of available homes rising 31.9%. This trend provides more options for buyers, but increases competition among sellers. Understanding these dynamics is critical for sellers looking to attract buyers in this evolving market.

Market trends in October 2024: Falling prices and rising inventories

As of October 2024, the U.S. housing market is experiencing notable changes that are shaping the landscape for both buyers and sellers. Home prices have fallen slightly, with the median listing price down 0.7% from the same period in 2023. At the same time, the inventory of homes available for sale has increased by an impressive 31.9%. This combination of falling prices and rising supply is changing the way both buyers and sellers approach the market.

For potential homebuyers, this shift presents new opportunities. The increased number of listings means more choices in terms of location, home style and price range. With mortgage rates also falling to two-year lows, buyers are in a stronger position than in recent years. However, this doesn’t necessarily mean smooth sailing, as buyers are still navigating a complex and competitive market. Properties are spending an average of seven more days on the market compared to last year, signaling that while there is more inventory, buyers remain cautious.

What this means for sellers

On the other hand, changes in the marketplace create challenges for sellers. The increase in available homes means that buyers have more options, making it harder for individual properties to stand out. In this competitive environment, sellers must be more strategic with their pricing. Overpricing a home in this climate can lead to longer listing times, as buyers are more likely to compare multiple homes before making a decision.

To stay competitive, many sellers are offering price cuts-about 18.6% of listings in October 2024 had price cuts. This trend reflects a growing understanding that realistic pricing is key to attracting buyers in a crowded market. Additionally, sellers may need to invest in minor renovations or home staging to make their property more appealing, as the surplus of listings allows buyers to be more selective.

Opportunities for buyers in October 2024

For buyers, the current market dynamics can be very beneficial. With more homes on the market, there is less pressure to rush into a purchase. The expanded selection allows buyers to find homes that meet their needs without having to compromise on location or features. In addition, falling mortgage rates have increased many people’s purchasing power, making it an ideal time to enter the market, especially for first-time buyers.

However, buyers should remain cautious. While the market may seem favorable, there are still factors to consider, such as future interest rate movements or local market fluctuations. It’s important to work with a knowledgeable real estate agent who understands both the broader market trends and the specific conditions in the buyer’s desired area.

Navigate price cuts and competition

Sellers may be inclined to drop prices, but that doesn’t automatically guarantee a sale. Pricing competitively from the start is often a better strategy than relying on post-listing discounts. In addition, as homes spend more time on the market, buyers may use this as leverage to negotiate even further price reductions, putting additional pressure on sellers to be flexible.

Sellers should also focus on highlighting the unique aspects of their homes to stand out in a crowded market. Whether it’s highlighting energy-efficient features, proximity to schools or recent upgrades, showcasing what makes the home desirable can make a significant difference. In some cases, working with an agent who can implement creative marketing strategies, such as virtual tours or social media campaigns, can help generate more interest.

Conclusion

October 2024 presents a mixed bag for the housing market. While falling prices and increased inventory create more opportunities for buyers, sellers must adapt to a more competitive environment. By remaining flexible with pricing and focusing on marketing, sellers can still succeed in attracting serious buyers. At the same time, buyers can take advantage of expanded options and lower mortgage rates, but should remain informed and strategic about their purchases. Understanding current market conditions is key for both sides to make informed, successful decisions.

Jack C Bharat

AmeriGroup Residential & Commercial Properties. Inc.

122-15 111th Avenue, S Ozone Park, NY 11420

Email: jackcbharat@gmail.com

Phone: (718) 805-6982

Jack C Bharat has been in the Real Estate Business since 2003. As a Realtor & Developer, his experience in buying dated, distress or fixer upper and renovated them back for resale can help both buyers and sellers in their transactions. Graduated in 1999 from Queens College (CUNY) Flushing, with a Bachelors of Arts Degree and in 2012 from LaGuardia College with Goldman Sachs 10K Small Business Certificate Of Entrepreneurship, Mr Bharat is always educating himself to stay current and sometimes ahead of Real Estate Market Trends. He is currently a Notary Public in the State of NY as well.
Mr Bharat has completed real estate projects in New York-Queens & Long Island, Florida-Ocala & Coral Springs & recently (Nov 2023) 8 Units Apt in Providence, Guyana. His passion for creating projects that blend functional modern architectural design in harmony with the natural environment are evident in his most recent commercial project in Providence Guyana, currently under initial phase of construction. Mr Bharat also is the CEO of Liberty Office Supplies & Equipment, Inc. A Certified Minority Business Enterprise (MBE) with New York City & New York State. Established in May 1999, Liberty provides a wide range of office supplies and work as a sourcing company for the Federal Government by being a GSA schedule holder.
Jack is Licensed as a Real Estate Broker in State of New York and in the State of Florida. He has knowledge in both residential and commercial sales. His motto “Working with Clients to achieve their real estate goals” is what drive him to be on top of his game. He is very involved in his community especially with social and educational issues. He is the proud sponsor of a local Cricket Team, Boxing and donates his time and money to various organizations that work with children, abuse victims and the elderly. He is cited by NYC Mayor’s Office, NYS Assembly and NYC Council for his leadership role in his community.
Mr Bharat has three daughters: Alicia who graduated with her Masters Of Science in Education from Queens College and is now a STEM Teacher with the NYC Dept of Education, Kayla who has recently (2024) graduated from CUNY School for Public Health with her Masters of Public Health in Environmental & Occupational Health Sciences & works as an Environmetal Health & Safety Specialist with Sloan Kettering Cancer Ctr. and Jessica who is currently enrolled as a senior at Queens College pursing her goal as a Dentist.