Weekly Real Estate Update: Is Now Still a Good Time to Buy?

By Justin O’Neill, Flyhomes

Welcome back to our weekly real estate update! I’m Justin O’Neill with Flyhomes, and every week, the team and I break down the latest in residential real estate in a simple, easy-to-digest format. In just five minutes, you’ll be up to speed on the key trends shaping the market.

We focus on four main categories:

Mortgage Rates
Inventory
Demand
Pricing

So, what’s the theme of the week? It could be worse. While mortgage rates have inched back up into the mid-6% range (we’re no longer flirting with those high-5% numbers), there’s still good news. Despite current conditions, this remains a better time to buy a home than at any point in the last two years. Why? It all comes down to a combination of inventory, pricing, and mortgage rates. Let’s take a closer look.

Mortgage Rates: The Worst May Be Over

Mortgage rates have climbed to around 6.6% this week, fueled by recent strong job reports. While no one loves higher rates, there’s a silver lining: we are edging closer to the start of a market recovery. It’s no longer a matter of if rates will drop, but when.

What’s more, we’re just at the beginning of the Federal Reserve’s anticipated rate cut cycle. Over the next 12 months, we expect to see an additional five to seven rate cuts. The takeaway? If you’re thinking about buying a home, now’s the time to start preparing. With the worst likely behind us, it’s a good idea to get your ducks in a row so you can act quickly when the right property comes along.

Inventory: Slow and Steady Growth

On the inventory side, the number of unsold homes on the market grew by 1% this week. That puts us at 33% more available homes compared to the same time last year.

This growth has been gradual—no sudden spikes, which indicates that we’re not expecting a flood of new listings any time soon. The current steady pace of inventory increases provides buyers with more options, while avoiding the market disruptions that can come with sharp changes in supply.

Demand: A Balanced Market with Moments of Seller Dominance

So how are buyers responding to this growing inventory? This week, 70,000 new listings hit the market, and 10,000 of them sold immediately. This is fairly typical for the market right now—things remain balanced between buyers and sellers.

However, we did see an interesting shift towards a seller’s market when mortgage rates temporarily dropped to 6.08%. That small rate dip sparked a spike in demand, driving home prices higher. This illustrates why now is still a good time to buy: when mortgage rates fall, home prices tend to rise in response. Being ready to move quickly when rates dip can give you a significant advantage in today’s market.

Pricing: Steady as She Goes

Home prices remained mostly unchanged this week. The median price of homes going into contract was $389,000, marking a 5% year-over-year increase. Meanwhile, the median price of homes currently listed (but not yet sold) was $439,000.

This stability in pricing, coupled with the growing inventory and the prospect of falling mortgage rates, creates a unique window of opportunity for buyers.

Final Thoughts: Is It Still a Good Time to Buy?

In short, yes—it’s still a good time to buy. Mortgage rates may be in the mid-6% range, but with inventory levels rising and the potential for further rate cuts ahead, buyers are in a much stronger position than they were over the last two years. The key is being prepared to act quickly when the right opportunity presents itself.

If you have any questions about the current market or this report, feel free to reach out to me directly at joneill@flyhomes.com. You can also learn more about Flyhomes by contacting us at hello@flyhomes.com.

See you next week for another update!

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