Hovering 6% Interest Rates – Will They Drop Even More?
If you’ve been waiting to buy a home because of high interest rates, now might be the perfect time to reconsider. Whether you’re a first-time buyer or looking to upgrade, the current market could be offering a unique window of opportunity—but you’ll need to act fast to take advantage of it.
For months, homebuyers have been hesitant, frustrated by rising mortgage rates and increasing home prices. However, the market is starting to shift in a favorable direction. Mortgage rates are trending downward, and this shift creates what can be seen as a 'buyer’s sweet spot.'
Why You Shouldn’t Wait for Lower Rates
Many potential buyers are waiting for rates to drop even further, but here’s something to keep in mind: as interest rates continue to decrease, more buyers will likely jump back into the market. In fact, a recent survey by Bankrate found that over half of homeowners would be motivated to buy if rates fall below 6%—and we’re close to that threshold!
But there’s a downside to waiting. When more buyers enter the market, competition intensifies, and that can lead to bidding wars, especially in areas where housing inventory is already limited. Increased competition often results in higher home prices, which could offset any savings from lower interest rates. So while waiting for rates to dip further might sound like a good idea, it could end up costing you more in the long run.
A Window of Opportunity
If you’re looking to buy in the Stillwater or Hudson School Districts, local market stats provide a clearer picture of the current landscape:
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New Listings: The total number of new listings in September 2024 across both districts is 186, down 5.10% compared to 196 in September 2023. However, new listings have increased by 4.49% since August 2024, which had a total of 178 new listings.
- Stillwater School District:
- September 2023: 135 new listings
- September 2024: 136 new listings
- August 2024: 114 new listings
- Hudson School District:
- September 2023: 61 new listings
- September 2024: 50 new listings
- August 2024: 64 new listings
- Stillwater School District:
While there has been a slight drop year-over-year, this uptick from August shows that inventory is starting to recover, offering buyers more options than they’ve had in previous months.
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Price Changes: Prices are down slightly compared to last year, with the average price in September 2024 at $487,952, a decrease of 1.51% from September 2023's average of $495,448. However, prices have decreased more significantly—by 17.70%—since August 2024, when the average price was $592,924.50.
- Stillwater School District:
- September 2023: $573,880
- September 2024: $526,040
- August 2024: $677,838
- Hudson School District:
- September 2023: $417,016
- September 2024: $449,864
- August 2024: $508,011
- Stillwater School District:
This price dip creates an even more compelling reason to act quickly, as buyers can take advantage of the current reduction in home prices before competition increases.
- Days to Sell: Homes in the Stillwater and Hudson School Districts are spending an average of 45 days on the market in September 2024, with homes in the Stillwater School District selling in 40 days and those in the Hudson School District taking 50 days to sell.
The Bottom Line
Timing the market is always challenging, but waiting too long could result in more competition and higher home prices. If you’re thinking about buying, now is a smart time to act. You can take advantage of lower interest rates, increased housing options, and a temporary dip in prices before the market becomes more competitive.
If you’re ready to make your move, connect with us today. We’re here to guide you every step of the way toward finding your perfect home.
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