If you’ve been holding off on listing your home because you’re unsure about buyer activity, here’s your sign: the tides are turning. After months of high mortgage rates keeping many buyers on the sidelines, things are starting to shift in favor of sellers. Economic changes are underway, and they’re bringing a wave of renewed buyer interest. It might just be the perfect time to talk with an agent and get your home on the market in Brookings, South Dakota.
Rates Are Dropping, and Buyers Are Coming Back
After a prolonged period of rising interest rates, we’re starting to see them come down. Just recently, the Federal Reserve cut the Federal Funds Rate for the first time since it began hiking rates back in March 2022. While the Fed doesn’t directly control mortgage rates, their actions influence them, and with more cuts expected into next year, mortgage rates could drop even further. That’s great news for both buyers and sellers.
When mortgage rates fall, the cost of borrowing decreases, making homebuying more affordable for many. As Lisa Sturtevant, Chief Economist at Bright MLS, puts it:
“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
So, if you’re a homeowner, this renewed buyer demand could work to your advantage, especially if you're thinking about listing your home soon.
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Buyer Activity Is On the Rise
There’s a clear relationship between falling mortgage rates and increasing buyer activity. As mortgage rates come down, more people apply for home loans. The Mortgage Bankers Association (MBA) tracks this with its Mortgage Application Index, and the trend is clear: as rates dip, buyer interest spikes. This is already happening, and the numbers back it up.
The National Association of Realtors (NAR) reports that home sales saw an increase in July, breaking a four-month streak of declining sales. This is significant because more buyers in the market means more competition for available homes. And more competition often leads to better offers and a quicker sale.
As Edward Seiler, Associate Vice President of Housing Economics at the MBA, explains:
“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
What this means for you as a seller is that the pool of potential buyers is growing. More buyers means more chances to sell your home quickly and at a favorable price. This uptick in activity is especially important in a place like Brookings, where housing inventory can sometimes be tight.
Why You Should Prepare Your Home Now
With more buyers entering the market, now is the time to start preparing your home for sale. The current conditions are creating a sweet spot for sellers, with lower mortgage rates fueling buyer demand. If you've been hesitant to list, it might be time to get ahead of the curve and take advantage of the momentum.
Here are a few things you can start doing to get your home ready:
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Deep Clean and Declutter: First impressions are key, and a clean, well-organized home will attract more buyers. Consider hiring professionals to help with this step if necessary.
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Enhance Curb Appeal: Simple things like fresh landscaping or a new coat of paint on the front door can make a huge difference in attracting potential buyers.
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Consult with an Agent: A real estate expert, like Shane Andersen from the Brookings Home Team, can offer personalized advice on how to prepare your home, price it right, and market it effectively to reach the right buyers.
Bottom Line
With mortgage rates on the decline and buyer activity picking up, now might be the perfect time to list your home. The real estate market in Brookings, SD, and the surrounding area is shifting in favor of sellers, and experts believe this trend will continue. Let’s connect and discuss how you can take advantage of this growing demand and get your house ready to sell. Working together, we can ensure you’re set up for success in this evolving market!
Posted by Shane Andersen on
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