October 2024 real estate market trends reveal shifts across economic indicators, impacting mortgage rates, housing market activity, and consumer confidence. For real estate and mortgage professionals, staying informed on these October 2024 trends is essential for understanding the current landscape. This report covers mortgage rates, job growth, inflation, and housing market changes to help you make informed decisions. For those preparing to list their property, our Pre-Listing Appraisal Guide offers insights on maximizing property value before sale.
Call us now for expert home appraisal services in Virginia Beach and the Hampton Roads area.
Interest Rates Rise: Key October 2024 Real Estate Market Trends
In October, interest rates rose significantly, impacting both mortgage rates and treasury yields. By the end of October, the 10-year Treasury yield reached 4.28%, up from 3.81% at the start of the month. Similarly, the 30-year fixed mortgage rate rose to 6.72%, compared to 6.08% in late September.
This increase in interest rates directly affects home affordability. For prospective buyers, higher rates mean increased borrowing costs, potentially reducing their purchasing power. For current homeowners considering refinancing, the higher rates may lead to delays in refinancing plans until rates stabilize.
The Federal Reserve’s recent decisions have aimed at stabilizing the economy, but inflationary pressures and global uncertainties have made rate adjustments necessary. Many economists anticipate that rates may fluctuate further in response to economic and political developments.
October 2024 Real Estate Market Trends in Housing Sales and Prices
October 2024 presented mixed signals within the housing market. Existing home sales declined by 1.0% month-over-month, marking a 3.5% decrease compared to the same period last year. In contrast, new home sales rose by 4.1% month-over-month and 6.3% year-over-year, driven by a slight decrease in inventory and steady demand for newly built properties. If you’re selling your home and wondering about appraisal impact, our guide on factors that lower a home appraisal covers crucial considerations.
Median home prices continue to increase, with single-family homes priced at $409,000 (up 2.9% YoY) and condos at $361,600 (up 2.2% YoY). This rise in prices underscores the sustained demand, especially in markets where housing inventory remains low.
The housing market’s resilience in the face of high mortgage rates reflects consumer optimism and demand for housing in certain regions. As more people enter the housing market, it is essential for buyers and sellers alike to stay informed about local trends and work with experienced professionals for accurate appraisals.
Labor Market Insights: Jobs and Unemployment Rates in October 2024
Labor market data in October revealed a slowdown in job creation, with only 12,000 jobs added, compared to 223,000 in September. This reduction in job growth was partly attributed to recent hurricanes, which disrupted employment in southeastern states. Despite the lower job growth, the unemployment rate slightly decreased to 4.1%, indicating a still-strong labor market.
Healthcare and government sectors led in job creation, while manufacturing saw job losses due to strikes and economic challenges. The labor market’s resilience may continue to support consumer spending, even as growth slows. Real estate professionals should monitor employment trends, as job stability often influences home-buying activity.
Inflation Rates: October 2024 Real Estate Market Trends in CPI and PCE
Inflation rates showed signs of stability in October, with the Consumer Price Index (CPI) rising by 2.4% year-over-year and the Personal Consumption Expenditures (PCE) index by 2.1%. These figures suggest that inflation is gradually aligning with the Federal Reserve’s 2.0% target. If you’re looking for more on how economic factors like inflation affect property value, read our analysis on external obsolescence in property appraisal.
Consumer Confidence and Spending in October 2024 Real Estate Market Trends
Consumer confidence saw an increase of 9.6% in October 2024, a sign that people remain optimistic about the economy despite ongoing economic challenges. Retail sales also rose by 0.4% in September, reflecting steady consumer demand and positively impacting real estate trends.
This rise in consumer confidence is critical to the housing market, as higher confidence levels often encourage spending on large purchases like homes. Professionals should monitor consumer sentiment, as it can provide insights into buyer readiness and market stability.
Energy Prices and Geopolitical Impacts: October 2024 Real Estate Market Trends
Energy prices rose in October, with West Texas Crude increasing to $70 per barrel and North Sea Brent Crude rising to $74 per barrel. Natural gas prices, on the other hand, decreased slightly, falling from $2.91 per MMBtu to $2.71. Geopolitical tensions, particularly in the Middle East, have contributed to this volatility in energy markets, and future conflicts could lead to further increases.
Fluctuating energy prices directly impact consumer costs, inflation rates, and housing affordability, as higher energy prices can increase overall living expenses. Real estate professionals should monitor these trends as they can indirectly influence buyer behavior and the housing market. Energy costs, especially in regions reliant on heating and cooling, may also affect home maintenance expenses, influencing buyer and renter affordability considerations.
Get accurate home appraisals from experts. Contact us today! For Virginia Beach property appraisals, our local property appraisal guide offers specific insights into area market trends.
Frequently Asked Questions about October 2024 Real Estate Market Trends
A home appraisal determines a property’s value, which is essential for lenders to ensure loan amounts align with the property’s true worth. For FSBO transactions, our FSBO Home Appraisal guide helps sellers understand how to prepare for the process.
Higher interest rates increase borrowing costs, leading to higher monthly payments for homebuyers and reducing overall affordability. For more insights, review our detailed guide on how appraisers adjust values.
When inflation rises, the cost of goods and services, including mortgage rates, tends to increase. Higher inflation can make housing less affordable, particularly as wages may not keep up with rising living costs. This is covered in our external obsolescence article for more in-depth understanding.
Consumer confidence measures optimism in the economy. High consumer confidence often drives more spending, including in the real estate market, as individuals feel secure enough to invest in homes and property improvements.
Preparing for a home appraisal involves completing minor repairs, ensuring cleanliness, and organizing relevant documents. Download our Home Appraisal Checklist to make the process smoother.
Housing market data provides insights on price trends, sales volume, and demand. This information helps buyers make informed decisions and understand current market conditions. Buyers can benefit from checking the latest house appraisal resources to better navigate the market.
Understanding these October 2024 real estate market trends is key for anyone in the real estate or mortgage industries. By staying informed on interest rates, inflation, and housing market data, professionals can better advise their clients and make strategic decisions. For expert home appraisal services, contact us today. Curious about appraisal costs? See our breakdown on home appraisal costs and what affects pricing.
Related Content: House Appraisal Services, Boost FSBO Sale with a Pre-Listing Appraisal