Expect the Unexpected: Anticipating Volatility in Today’s Housing Market

<article class="post-1257655 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1257655"><span class="entry-date">November 5, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Expect the Unexpected: Anticipating Volatility in Today’s Housing Market</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Expect+the+Unexpected%3A+Anticipating+Volatility+in+Today%E2%80%99s+Housing+Market&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fexpect-the-unexpected-anticipating-volatility-in-todays-housing-market%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Expect the Unexpected: Anticipating Volatility in Today’s Housing Market Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241104/20241105-Expect-the-Unexpected-Anticipating-Volatility-in-Today-s-Housing-Market-original.png" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>You’ve probably noticed one thing if you’re thinking about <a href="https://www.simplifyingthemarket.com/2024/10/17/why-did-more-people-decide-to-sell-their-homes-recently/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">making a move</a>: the housing market feels a bit unpredictable right now. The truth is, from home prices to mortgage rates, we’re seeing more volatility – and it’s important to understand why.</p>
<p>At a high-level, let’s break down what’s happening and the best way to navigate it.</p>
<h4><strong>What’s Driving Today’s Market Volatility?</strong></h4>
<p>Factors like economic data, unemployment numbers, decisions coming out of the <em>Federal Reserve </em>(The Fed), and even the <a href="https://www.simplifyingthemarket.com/2024/11/01/qa-how-do-presidential-elections-impact-the-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">presidential election</a>, are creating uncertainty right now – and uncertainty leads to market volatility.</p>
<p>You can see that when you look at what’s happening with mortgage rates. New economic reports and other geopolitical events have an impact and can cause sudden shifts up or down, even though experts still forecast rates will <a href="https://www.simplifyingthemarket.com/2024/10/21/what-to-expect-from-mortgage-rates-and-home-prices-in-2025/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">come down overall</a>. We’ve seen that effect play out recently, like when employment and inflation data get released each month.</p>
<p>And as the markets react, these types of updates will continue to have an impact on rates moving forward. As Greg McBride, CFA, Chief Financial Analyst at <em>Bankrate, </em>says:<em> </em></p>
<blockquote><p><em>“After steadily declining throughout the summer months, I expect more ups and downs to mortgage rates . . . Job market data will be closely watched as well as any clues from the Fed about the extent of upcoming interest rate cuts.”</em></p></blockquote>
<p>This is exactly why the projected decline in mortgage rates isn’t going to be a straight line down over the next year. As Hannah Jones, Senior Economic Research Analyst at <em>Realtor.com</em>, explains:</p>
<blockquote><p><em>“Rates have shown considerable volatility lately, and may continue to do so . . . Overall, we still expect a downward long-term mortgage rate trend.”</em></p></blockquote>
<p>Plus, <a href="https://www.simplifyingthemarket.com/2024/10/03/home-values-rise-even-as-median-prices-fall/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> and the <a href="https://www.simplifyingthemarket.com/2024/10/17/why-did-more-people-decide-to-sell-their-homes-recently/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">number of homes</a> on the market vary dramatically depending on where you’re looking to buy or sell, which makes it even harder to get a clear picture. In some areas, home prices are rising and inventory is tight, while in others, there are more homes available and it’s leading to more moderate pricing shifts.</p>
<p>As all of this unfolds, understanding what’s happening will help you make the right decisions, whether that’s <a href="https://www.simplifyingthemarket.com/2024/10/18/why-buying-now-is-worth-it-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/2024/10/16/the-benefits-of-using-your-equity-to-make-a-bigger-down-payment/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling</a>. And there’s one easy way to get that information: from a <a href="https://www.simplifyingthemarket.com/2024/10/15/why-an-agent-is-essential-when-buying-a-newly-built-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">professional</a>.</p>
<h4><strong>The Importance of Partnering with a Pro</strong></h4>
<p>While the road ahead may have some bumps and unexpected turns, you don’t have to go it alone. A <a href="https://www.simplifyingthemarket.com/2024/10/31/how-real-estate-agents-take-the-fear-out-of-moving/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">great agent</a> will keep you up to date on the latest market developments, guide you through any shifts, and help you make smart decisions based on your goals.</p>
<p>For example, as mortgage rates change, professionals (like your agent and a trusted lender) will explain how the shifts impact what you can reasonably plan for in your monthly payment. This will help you see how even a small change in rates can impact your bottom line – that way you don’t lose sight of the big picture even as shifts happen here and there.</p>
<p>And since conditions can vary significantly from one neighborhood to another, your agent will also help you understand the specifics of your market—whether it’s how to navigate competition with other buyers, the number of homes available, or what’s happening with local home prices. Their insights and expertise will help you adapt to any movement in the market.</p>
<h3>Bottom Line</h3>
<p>The housing market may be experiencing some shifts, but don’t let it stop you from making your move. With the support of an experienced real estate agent and a trusted lender, you’ll be ready to navigate the changes and make the most of the opportunities that come your way.</p>
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