Hi y’all! Today we break down Why Realtor.com is Wrong ❌ and don’t miss Your Personal Treehouse in the Westlake Hills 🌳 

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WHAT'S INSIDE

• ❌ REALTOR.COM IS WRONG

  • What they’re talking about

  • Why they’re wrong

• 🔢 THE DATA

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

❌ REALTOR.COM IS WRONG

You may have seen these headlines this week:
Let me tell you what they’re talking about and why they’re wrong.

What they’re talking about

This “Best Time to Buy” headline is based on two things:

1) Increasing number of homes on the market
2) Decreasing competition with other buyers

🧃 Quick refresh:

More inventory and the less competition means we move towards a buyer’s market.

Buyer’s market = better deals, less negotiation, more choice

September 29-October 5 is supposed to be the best time to buy because the pendulum should swing solidly into Buyer’s Market territory.

Note: This article is general to the US - true market trends are hyperlocal and should be examined on a neighborhood/subdivision basis.

Why they’re wrong

1) There is no “best time” to buy a house

2) This is a marketing tactic and catchy headline. The best time to buy is when you find a home perfect for you at a price point that makes sense.

The idea that you should buy during a short 1 week window to save money is a classic example of stepping over dollars to pick up pennies.

Saving $14,000 is big but it’s very small compared to your purchase price. On a $700,000 home it’s only 2%.

I hear you saying you want a good deal and you want to make money on your home when you sell. I get it. Here’s what I tell my clients:

Time in the market is more important than timing the market.

The same concept you use with stocks applies to your real estate asset. Over a long enough time horizon, real estate values will trend upwards. Generally, the longer you’re in the game, the higher your returns will be.

We don’t have a crystal ball and you need conviction to weather the natural cycling of the market.

TLDR:

• Don’t sweat the small stuff - buy a home when it makes sense for you

• Timing your home purchase won’t yield meaningful savings

🔢 THE DATA

We did a deep dive into the Fed rate cut last week - here’s how things have been shaking out:

Mortgage rates hit the lowest rate since February 2023. 30-year fixed rates averaged 6.02%

Has that made any change in the real estate market?

Not really.

• Seasonality says that the housing market will slow down in the fall - this cut may result in additional transactions but not enough to meaningfully change the market

• Housing activity historically decreases during an election month

• Many homeowners will still have a “lock-in effect” (they don’t want to sell or buy because they can’t beat their current rates)

For now, business as usual.

⁉️ WHAT THIS MEANS FOR YOU

Phew. That was a ton of information - here’s your summary.

If you’re a buyer/seller/investor/renter or just interested in real estate - this weekly newsletter will help you understand the market and guide your decisions.

🤤 HOUSE WORTH DROOLING OVER

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Yours for $4,995,000

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