Navigating the Summer Real Estate Market: What to Expect in Summer 2024

As we approach the heat of summer, the real estate market is also heating up, albeit in a different way. Buyers and sellers alike are gearing up for a season marked by close scrutiny of interest rates, political uncertainties, and new regulatory landscapes. Here's what you can expect in the real estate market this summer:

1. Interest Rates Under the Microscope: As the November presidential elections draw near, all eyes are on interest rates. While we don't anticipate significant shifts, the history of the market shows that even a modest decrease (around half a percent) can motivate potential buyers. Given the broader economic backdrop, including volatility in the stock markets as election day approaches, it's likely that mortgage rates will be a critical factor for buyers sitting on the sidelines.

2. Low Inventory Continues: The current landscape shows a significant reduction in available properties, with only 17,300 active listings on the MLS compared to a more typical figure around 30,000. This lower inventory is expected to persist through the summer, which naturally limits options for buyers but also stabilizes price growth. 

3. Price Dynamics: With the ongoing low supply paired with less robust demand than usual, price increases are expected to be modest. Sellers might not see the large bidding wars of past years, but well-positioned, move-in-ready homes could still attract multiple offers, especially if interest rates see any downward adjustment.

4. Impact of New Realtor Guidelines: Starting in August, new guidelines for realtors will be implemented. These changes might lead to some initial confusion regarding roles and responsibilities within transactions. Both buyers and sellers should stay in close communication with their agents to navigate these adjustments smoothly.

5. Potential for a Busy End of Summer: If interest rates drop meaningfully, the market could see a surge in activity, particularly with move-in-ready and updated homes. Such a scenario would likely lead to multiple offer situations, reminiscent of more buoyant market conditions. Buyers should be prepared for this possibility by having their financing in order and being ready to move quickly on properties that fit their criteria. Also don’t forget about buyers and sellers that have been putting off moving since the pandemic in 2020. Trust us, there are a lot of them! 

In summary, this summer's real estate market will be shaped by economic signals, election year dynamics, and industry-specific changes. Whether you're buying or selling, staying informed and flexible will be key to navigating the season successfully. With careful planning and the right guidance, there are still opportunities to be had in this complex landscape.