| Autumn in the US could bring a thaw to the housing market. Hopeful buyers and sellers should be ready to pounce well ahead of the traditional start to moving season in the spring, and I'll tell you how to prepare. The stage is set for something of an inversion in the market, one typically thought to slow at the end of a calendar year and heat up again in spring. People, the thinking goes, are more motivated to tour houses as the weather heats up and families want plenty of time to settle into their new homes ahead of the next school year. But a series of interest rate cuts widely expected to begin later this month appear to be breathing life into a residential real estate market called everything from "frozen" to "almost impossible" in recent years. Mortgage rates have dropped and are at their lowest level since May 2023. Potential homebuyers are already applying for loans at a faster clip. A true stampede has yet to start, though, and rate cuts are not a certainty. That presents a unique opportunity for those who are ready. "Now could be the perfect time for a buyer who's been waiting on the sidelines to jump into the market," says Orphe Divounguy, a senior economist at Zillow. "You've got an improvement in housing affordability coming from mortgage rates. You have a lot of new homes on the market. And builders are offering all types of incentives to try to get their inventory moving faster." Buyers looking to seize the moment can help themselves by planning ahead. Getting a feel for the market, preparing the necessary paperwork and refining their credit scores all help. Boosting a score can be as simple as calling your credit card company and asking for an increase to your monthly limit, says John Bovard, owner of Incline Wealth Advisors in Cincinnati. Still, mortgage rates may not decrease as much as anticipated, cautions Laura Mattia, senior vice president of Wealth Enhancement Group in Sarasota, Florida. It's crucial for homebuyers to ensure they can afford their mortgage at the time of purchase, she says. And for sellers, it's important to set expectations. The latest data show existing-home sales recently increased for the first time in five months. But competition from buyers is still muted compared to the heady days of the pandemic. Divounguy says many potential sellers who have been waiting out the chilly market are now willing to cut prices so their homes sell quickly. In this context, agents say it's more important than ever to focus on the appearance of a home online. A quality web presence can be the difference between boom and bust. "A lot of the buyer's journey starts online," says Marina Macartney, a Realtor with First Team Real Estate in Orange County, California. "Have you done the work that's going to convert those online visitors into in-person tours?" — Charlie Wells Send questions about your own financial decisions to bbgwealth@bloomberg.net What is the biggest financial mistake you see clients make in the second half of the year? Colin Moynahan, financial adviser for Twenty Fifty Capital in Charleston, South Carolina, writes: As the summer ends and the final stretch of the year approaches, many people do not make the time to truly think about the months ahead from a financial perspective and plan accordingly. Without this planning, they often find themselves scrambling to cover expenses. This often entails selling investments in a tax-inefficient manner or incurring high-interest, short-term debt. The latter half of the year is packed full of financial needs, from known, fixed expenses such as tuition bills, insurance premiums and quarterly taxes to the uptick in spending on holiday travel and gifting. To help avoid this stress, I suggest people not only make the time to think through their next few months and what expenses they have on the horizon, but plan for them as well. A good practical approach to this would be referencing bank account and credit card statements from the previous year.
This week, we're looking to speak with members of Gen X about their retirement plans. Do you feel you're on track? Are you working hard on catch-up contributions? What are the biggest challenges you're facing? Some of our best journalism at Bloomberg Wealth comes from your own stories and we'd love to hear from you, your friends or clients. Please email bbgwealth@bloomberg.net or fill out this form. | 
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