October 2024 Real Estate Market Overview

Introduction

Welcome to October 2024’s real estate market update! As we step closer to the end of October, it’s essential to take a closer look at the current trends shaping our local housing market. Understanding these trends can provide valuable insight for both buyers and sellers. In this Blog we’ll cover current market trends, inventory levels, average days on market, and economic factors, affecting Livingston, Oakland, Wayne, and Washtenaw Counties of Michigan.

Current Market Trends

The average sales price, inventory levels, and days on market are great indicators of market health. We will briefly compare October 2024 to around the same time in October 2023 with these indicators.

Average Sales Price

In October 2024, the average sales price of homes sold is ~$415,000 in Livingston County (7.06% Increase), ~$387,000, in Washtenaw County (7.07% increase), ~$372,000 in Oakland County (14.48% increase), and ~$209,000 in Wayne County (10.08% increase). This reflects rising demand in the real estate market, buyers and sellers should both take note of this trend as it affects both affordability and property value appreciation.

Months of Inventory

Months of inventory refers to the average time it would take to sell all current listings at the current sales pace, assuming no new properties come onto the market. This metric provides insight into supply versus demand, helping to determine whether it’s a buyer’s or seller’s market. Generally, low months of inventory (typically under 3 months) indicate a seller’s market, where homes sell quickly, and prices may rise due to high demand. High months of inventory (over 6 months) suggest a buyer’s market, where homes remain on the market longer, giving buyers more negotiating power. Analyzing data from the four counties, there is an average increase of 1.84 months of inventory. This trend may be linked to the more favorable interest rates observed in 2024. According to Freddie Mac, the fixed-rate mortgage for 30 years was 6.44% for the week ending October 17th, 2024, compared to 7.63% for the same mortgage in the week ending October 19th, 2023.

Seasonal Considerations

Holiday Season

With the holiday season approaching, several factors come into play. Many buyers aim to close on a home before the holidays, creating a sense of urgency as families often want to settle in before Thanksgiving or Christmas. This can lead to a temporary spike in activity during late October and early November. Conversely, some sellers may take their homes off the market to avoid disruptions during family gatherings, resulting in lower inventory levels.

Additionally, financial pressures and increased spending during this time can create uncertainty among buyers, leading some to postpone their home search until after the holidays. Generally, the real estate market slows down in late December as individuals prioritize spending time with friends and family, contributing to fewer transactions and lower overall market activity.

Historical Impact of Presidential Elections

The impact of presidential elections on the real estate market is quite significant. Historically, we see that during election years, many buyers and sellers tend to hesitate, creating a slowdown in market activity. This pause often results from concerns over potential policy shifts that could affect the economy, such as changes in tax laws or housing regulations. For instance, in the lead-up to the 2020 election, many buyers put their home searches on hold, which contributed to a notable decline in sales. After elections, the market dynamics can shift as new administrations implement policies that influence mortgage rates and housing demand, which can either stimulate or suppress market activity.

Conclusion

October’s real estate trends reveal an active market across Livingston, Oakland, Wayne, and Washtenaw Counties. With higher sales prices, adjusted inventory levels, and various economic factors influencing buyer and seller decisions, it’s clear that the current landscape is dynamic. As we approach the end of the year, seasonal shifts and upcoming elections may add new dimensions to local market activity, impacting affordability, demand, and market positioning.

-Brandon Patzsch, Remax Platinum

Ready to make a move? Whether you’re thinking about buying, selling, or simply staying informed, reach out today to discuss how these trends could impact your real estate plans. Let’s create a strategy that works for you in today’s market.

1. Zillow. “The Holiday Effect on Real Estate.” Zillow, 17 Oct. 2019, www.zillow.com/blog/the-holiday-effect-191210/.

2. “How the Holiday Season Affects the Real Estate Market.” Realtor.com, www.realtor.com/advice/buy/holiday-season-real-estate-market/.

3. Keeping Current Matters. “How the Holidays Affect Real Estate Sales.” Keeping Current Matters, 26 Oct. 2020, www.keepingcurrentmatters.com/2020/10/26/how-the-holidays-affect-real-estate-sales/.

4. Freddie Mac. “Primary Mortgage Market Survey.” Freddie Mac, www.freddiemac.com/pmms.