Buying a House in September 2024: Key Trends and Guidance

The housing market continues to evolve, with new developments impacting potential buyers and sellers alike. As of September 2024, anyone interested in buying a house is keeping a close eye on market trends, especially as mortgage rates fluctuate, home prices shift, and inventory levels fluctuate. Understanding these changes can make a significant difference when it comes to timing your decision, especially if you’re working with resources like the National Buyers Agents Association (NBAA), which connects buyers with top real estate agents for expert guidance when buying a house.

In this comprehensive market update, we’ll explore the current state of the housing market, focusing on trends that directly impact those buying a house. Whether you’re a first-time buyer, a seasoned investor, or considering selling and purchasing a new home, this guide will provide key insights to help you navigate today’s real estate landscape.

Key Takeaways for Buying a House in September 2024

Before diving into the details, here are the most important trends to watch for when buying a house in September 2024:

• Mortgage Rates: After months of high interest rates, mortgage rates began to drop in August 2024, creating an opportune time for those buying a house. The Federal Reserve’s next decision could further influence these rates.
• Home Prices: Home prices continue to rise, though at a slower pace than in previous years. Experts predict that appreciation will continue into 2025, which could impact those buying a house now versus waiting.
• Inventory Levels: Inventory is still limited, but there has been a slight increase in the number of homes on the market. However, lower mortgage rates could drive more buyers into the market, which may reduce the available housing inventory.
• National Buyers Agents Association: The NBAA connects homebuyers with experienced buyer’s agents who help navigate the complexities of the real estate market. They ensure that buyers get the best deals and insights when buying a house.

Mortgage Rate Trends for Homebuyers

Mortgage rates have been steadily dropping since August 2024, providing relief for those buying a house. As of early September, the average 30-year fixed-rate mortgage was 6.35%, and the 15-year fixed rate was 5.47%, according to Freddie Mac’s Primary Mortgage Market Survey. This decline is due to market anticipation of the Federal Reserve potentially lowering rates in their upcoming meeting.

For buyers, these lower rates mean more affordable monthly payments. For example, someone with a 7.52% rate in April 2024 would save over $375 per month if they locked in a 6.40% rate by August. If the Federal Reserve reduces rates further, mortgage rates could drop even more, offering an ideal opportunity for those considering purchasing a home.

Home Prices and Their Impact on Buyers

While mortgage rates are declining, home prices are still on the rise, although the rate of appreciation has slowed. According to the National Association of Realtors (NAR), national home prices rose by 4.2% in July 2024 compared to the previous year. This marked the 13th consecutive month of year-over-year price increases, highlighting the resilience of the housing market despite economic uncertainty.

For those buying a house, rising home prices mean that waiting to purchase could result in higher costs in the near future. While prices are expected to continue increasing, experts forecast a slower rate of appreciation in 2025. Current predictions suggest a 2.7% rise in home prices next year, compared to the 3.1% average increase seen in 2024.

This slower pace of appreciation is encouraging news for buyers who may have felt priced out of the market in recent years. However, even with a more modest rise in prices, the cost of homes is still expected to go up. Acting sooner rather than later may be the best strategy for those looking to maximize affordability when buying a house.

If you are buying a house in 2024, it’s crucial to understand that the combination of lower mortgage rates and rising home prices creates a unique opportunity. By locking in a lower rate now, buyers can save on interest payments. They may also benefit from future home equity gains as prices continue to rise.

Housing Inventory: What Buyers Need to Know

Inventory levels, or the number of homes available for sale, remain a significant factor for anyone buying a house in today’s market. While inventory has been historically low over the past few years, there has been a slight improvement recently. The National Association of Realtors reported a 0.8% increase in unsold existing homes from June to July 2024.

This modest uptick in inventory is a positive sign for buyers, as it indicates that more homes are becoming available. However, the drop in mortgage rates may counteract this trend by encouraging more buyers to enter the market. According to HousingWire, there was a slight dip in home inventory at the end of August 2024, suggesting that demand may be starting to outpace supply once again.

For buyers, this means that competition could intensify in certain markets, particularly if mortgage rates continue to decline. If you’re buying a house, it’s essential to be prepared to act quickly when you find a property that meets your needs. Working with a top buyer’s agent through the National Buyers Agents Association can help you navigate this competitive landscape. They will assist you in securing the best possible deal.

Financial Considerations for Buying a House

In addition to mortgage rates and home prices, there are other financial factors to consider when buying a house. One major aspect is home equity, which has increased significantly for homeowners due to rising property values. This growth in equity can provide buyers with opportunities for financial leverage. For example, they might use a home equity loan or line of credit to finance renovations or other expenses.

However, homebuyers should be aware of the potential tax implications of capital gains when selling a home. If you sell your home and earn more than $500,000 in gross capital gains (for married couples), you may face additional tax liabilities. It’s important to be aware of this potential tax impact.  It’s always advisable to consult with a financial advisor or tax professional. This is especially important before making any major decisions related to buying or selling a home.

For those considering buying a house in 2024, the drop in mortgage rates is a significant advantage. Additionally, slower price appreciation offers a favorable window of opportunity. However, careful financial planning is crucial to ensuring a smooth and successful home purchase.

How the National Buyers Agents Association Helps Buyers

If you are buying a house, the National Buyers Agents Association (NBAA) is a valuable resource to help you navigate the real estate process. NBAA connects you with top buyer’s agents in your area. These agents are experienced in finding the best homes for your needs and negotiating on your behalf. Working with an agent through the NBAA ensures expert guidance every step of the way. This includes your initial home search through to closing the deal.

The agents in the NBAA network specialize in representing buyers exclusively, which means they are fully dedicated to helping you get the best possible deal. These agents offer unbiased advice and negotiate effectively by focusing solely on the buyer’s side.

On average, homebuyers who work with agents from the National Buyers Agents Association save thousands of dollars. This is due to their expert negotiation and market knowledge. The NBAA also offers resources to help buyers understand local market trends, financing options, and more.

What to Expect When Buying a House in 2024

For those buying a house in 2024, the current market presents both opportunities and challenges. On the one hand, lower mortgage rates make homeownership more accessible for many buyers. On the other hand, rising home prices and limited inventory mean that it’s essential to act quickly and strategically.

Here are a few key things to keep in mind as you navigate the process of buying a house in 2024:

• Act Fast: With lower mortgage rates and competitive markets, properties are likely to sell quickly. When you find a home that meets your criteria, don’t hesitate to make an offer.
• Get Pre-Approved: Before you start shopping for a home, get pre-approved for a mortgage. This will give you a clear idea of your budget and make you a more attractive buyer to sellers.
• Work with a Buyer’s Agent: A knowledgeable buyer’s agent can help you navigate the complexities of the market. They will also negotiate the best deal on your behalf. They can also provide valuable insights into local market trends.
• Consider Your Long-Term Goals: When buying a house, think about how it fits into your long-term plans. Are you looking for a forever home, or do you plan to sell in a few years? Understanding your goals will help you make the best decisions.

Conclusion

In conclusion, September 2024 brings promising news for those considering buying a house. Mortgage rates have been steadily declining, giving buyers more purchasing power, while home prices are expected to stabilize. This creates an ideal opportunity to enter the market before prices increase further.

However, navigating these shifts can be challenging. For expert guidance, the National Buyers Agents Association is here to help. They can connect you with top buyers agents who specialize in your local market, ensuring you make well-informed decisions. Whether you’re a first-time homebuyer or looking to expand your portfolio, having the right professional support can make all the difference in securing the best deal.