Real Estate: It’s a good time to buy with mortgage rates falling
By JESS BARRON, Lindsey’s Inc. Realtors
After much speculation all year, interest rates have finally decreased.
The Federal Reserve met and released a statement on September 18th saying they reduced the federal funds rate by a half percentage point. Some analysts expected a quarter point decrease, so half a point was a nice surprise. Many experts think this is the first of many reductions, so we will need to keep any eye on that. Mortgage rates typically decrease when the federal funds rate is reduced.
Linda Walden, a local Newnan lender with Fairway Mortgage, spoke at our office this week. Linda said she is currently writing home loans at 5.75%. While that may not be the high two or three percent range of a few years ago, a 5.75% mortgage rate is excellent historically.
Not only are mortgage rates falling and expected to decrease more, but the local real estate market has significantly softened. The last few weeks are the slowest, as far as showings, buyer traffic, and offers, that I have seen all year. We are seeing more price reductions on listings, seller-paid closing costs (especially with new construction), and more open houses to try and generate traffic for sellers. While some of this is seasonal (the real estate market begins to slow down in the fall), the change is more significant than usual this year in my opinion. This is a good thing for a buyer.
Listing inventory has increased dramatically as well. Buyers have more choices, as far as properties, than they have had in years. At the time that I am writing this article, there are 719 residential listings for sale in Coweta County per the Georgia Multiple Listing System (GAMLS). While still low historically, this is the highest amount I have seen in many years.
Pricing has decreased slightly also. The average sales price in Coweta County, $456,736, was down two percent from August of 2023 to August of 2024 per GAMLS. I expect the price decrease to be larger in September. All the market factors like mortgage rates, listing supply, and pricing are shaping up nicely for buyers. If you have been waiting to purchase, now is a good time to jump back in the real estate market.
Jess Barron is an Associate Broker with Lindsey’s Inc. Realtors and former President of the Newnan-Coweta Board of Realtors.
