Following the Fed’s rate cuts in September, October began with the lowest interest rates seen in two years, fueling a surge in demand and boosting market activity. This led to an increase in the number of properties sold, as well as rises in the median sales price and price per square foot for both single-family homes and condos.
Although interest rates began to rise again throughout October, demand remained robust amid limited inventory. As of November 11, major stock indices hover near record highs, signaling potential mixed impacts across market segments in the coming months.
The luxury market (properties priced at $3M and above) saw notable growth during October, marked by a significant jump in both the number of properties sold and those going into escrow. High-end buyers often prioritize unique property features, prime locations, and investment potential, and the recent fluctuations in financial markets encouraged many to act quickly to secure their desired properties.
Over the next several weeks, we expect typical seasonality to take hold, resulting in fewer new listings as the market gears up for the spring selling season. Historically, November and December see a significant drop in listings and overall sales activity, with more unsold properties being withdrawn from the market, particularly in higher price brackets. Nevertheless, this quieter period can be an ideal time for savvy buyers to secure some of the year’s best deals.
