What the heck is going on with the real estate market?

As I go about my daily life as a real estate investor, agent, and overall real estate junkie, I find myself asking a lot of questions lately…

  • Why are more and more houses popping up for sale on the market? 

  • Why are houses sitting on the market for so long? 

  • Why are two of my neighbors selling their houses (is it me…)? 

  • When are the blasted interest rates going to drop? 

Maybe you are asking some of the same questions as you drive around town….

I think we can all agree–the real estate market is in a WEIRD place right now.

Here’s my two cents about what’s going on: it’s the summer moving season, so more houses are going on the market (like normal), but there are fewer buyers than in past summers because interest rates are still high, and people are wary of locking themselves into a mortgage with a high interest rate. 

Unfortunately, mortgage rates just can’t seem to find a downward groove.

After dancing to a 2024 high of 7.22% in May, the average 30-year fixed mortgage rate took a tiny step back, dropping 36 basis points (that’s one one-hundredth of a percentage point for those keeping score at home). This week, the 30-year fixed rate settled at 6.86%, according to Freddie Mac.

But don’t break out the confetti just yet. Many housing market experts predict that mortgage rates will keep limboing around the current level unless the Federal Reserve decides to play DJ and cut its benchmark interest rate.

For instance, the National Association of Realtors (NAR) expects the 30-year fixed mortgage rate to average 6.7% but dip down to a "whopping" 6.5% by the end of 2024. 

Is there a silver lining? 

Yes, of course! If you are a cash buyer, it is a great time to be you! You have your pick of the litter and A LOT of negotiating power. 

For the rest of us–Good Luck out there! 

At least a job in real estate is rarely ever boring :)  

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