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Houston’s housing market is buzzing with opportunities and shifts, highlighted by the Federal Reserve's decision to cut rates for the first time in four years. In our February 2024 State of the Real Estate, we predicted that interest rates would fall steadily for the rest of 2024 ahead of the November election, and we are now seeing that prediction become true. Though the market is cooling slightly, growth remains steady, making this a unique moment for buyers and sellers. Let’s dive into the numbers and see what this means for buyers, sellers, and industry professionals as we head into the final months of 2024.
In September, Sign Boss real estate agents outperformed the Houston average by achieving 8.21% more sales than the city's average. As previously mentioned, our February 2024 State of the Real Estate correctly predicted a steady decline in interest rates leading up to the November election. On September 17-18, the Federal Reserve made a significant move by cutting the fed funds rate by 50 basis points, the first cut seen in over four years.
As a result of this decision, the Fed's benchmark rate now sits between 4.75 and 5 percent. With the 30-year mortgage rate now at 6.12%, down from spring highs above 7%, we're seeing renewed interest from buyers. This is also supported by our 53.42% refill increase, suggesting more transactions are moving forward to closing. The combination of more inventory and longer selling times could indicate a gradual shift towards a buyer's market. However, the increase in sales shows that demand remains strong.
As we move into the final quarter of 2024, the Houston real estate market shows signs of health and balance. Though the Houston market isn't seeing the rapid pace of recent years, the steady growth in sales and prices, coupled with increased inventory, creates opportunities for sellers and buyers alike.
As we move closer to the end of 2024 and the upcoming November election, we anticipate continued stability in the Houston real estate market. The recent interest rate cut could further stimulate activity, potentially leading to a busy fall season.
What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.
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