New York

The residential real estate markets showed mixed but somewhat positive results in the third quarter for 2024. The quarter began slowly, with interest rates still high and anticipation of lower mortgage rates after the Federal Reserve meetings. Late summer, typically a seasonal low, was further impacted by election-year uncertainties, where microeconomic trends intersected with market dynamics and influenced pricing, highlighting new consumer behavior.

The number of listings declined, resulting in even smaller inventory and bidding wars for good, well-priced properties. Once mortgage rates responded positively to the anticipated interest rate drop, market activity began to increase. Expected further adjustments to interest rates should continue boosting listings and sales through the fourth quarter.

Seasonality will again play a role in the upcoming months, as snowbirds weary from cold weather decide to list their properties to downsize or move to warmer climates. However, recent weather patterns and storms may cause some owners to hesitate.

Days on the market generally decreased as active buyers faced stiff competition to secure a property. This points to a recovery from the sluggishness of the past two years. The gap between listing prices and actual sale prices narrowed, as new listings were priced appropriately and buyers saw increased value with declining interest and mortgage rates.

As the holidays approach, buyers who remain active will find the best deals of the year. Sellers listing now are often motivated and prefer not to see their sales extend into the early winter. The willingness to negotiate, combined with lower interest and mortgage rates, makes this an attractive time to transact.

Overall, these trends suggest a gradual recovery for the residential real estate market.