While 2024 has not been a record-breaking year for home sales, you may be surprised to learn that it has actually marked one of the slowest periods for real estate transactions in more than 30 years. Home sales during the first eight months of the year have hit an all-time low, with only 2.5% of homes changing hands—a figure that hasn’t been seen for decades. The pace of home sales and listings are both down by at least 30% compared to pre-pandemic levels in 2019.
A Nationwide Trend: Lowest Turnover in 30 Years
California’s metro areas, in particular, have seen the sharpest drop in property turnover, but the Sun Belt and New York's commuter metro areas have managed to post higher numbers of transactions. Nationwide, however, the figures are striking: this year, there were 37.5% fewer homes sold compared to the height of the pandemic’s real estate buying frenzy in 2021, when 40 out of every 1,000 homes were sold. Even compared to 2019, the last pre-pandemic year, there were 31% fewer homes sold, down from 36 of every 1,000 homes.
What’s Behind the Slowdown?
Several factors have contributed to this slowdown. Higher interest rates and rising property prices have made buyers hesitant, while a limited inventory of available homes has left many prospective buyers frustrated. However, there is also a sense of anticipation in the market, with both buyers and sellers waiting to see the outcome of the upcoming national elections in November. The results could have a significant impact on housing policies, with contrasting platforms being promoted by the candidates.
Why Now Might Be the Best Time to Buy a Home
While the market may seem sluggish, this could be the perfect opportunity for buyers. Historically, real estate investors have made their biggest gains during slower market periods. When the market is less competitive and interest rates are higher, home prices tend to stabilize or even decrease, providing savvy buyers with the chance to secure properties at a lower price than during a booming market.
For those looking to buy, there are several financial programs available that can make homeownership more accessible, even in this challenging market. We offer programs that don’t require a 10% down payment, and there are down payment assistance options available. If you’re a veteran, the opportunity is even better, as VA loans can provide 100% financing with no down payment required.
Investing Now Could Lead to Future Wealth
It’s often said that the best time to invest in real estate is during a market downturn. When the market is fast and rates are low, you may pay less in interest, but you’ll likely pay more for the home. In times like these, when interest rates are higher and market activity is slower, you have the chance to negotiate better deals. Investing in a home now could potentially lead to significant future wealth, as property values tend to rise over time.
Take Advantage of This Market
If you’ve been waiting to buy a home, now could be the time to act. With a variety of programs to assist you and fewer buyers competing for the same properties, you could find yourself in the perfect position to secure a home at a favorable price. Reach out today to learn more about the opportunities available and how you can make the most of this unique market moment.
By investing when the market is slower, you could be setting yourself up for long-term success. Contact us to explore how you can get into your new home with the right financial support.
