Fall Housing Market Update: Lower Rates Spark Sales Rebound and New Buyer Opportunities

After months of navigating tight inventory and soaring rates, the Fall housing market is signaling a positive shift. According to the latest data from the National Association of REALTORS® (NAR), existing-home sales saw a 1.5% month-over-month increase in September nationally, with sales up over 4% from a year ago.

This momentum is being driven by two key factors: improving affordability and a much-needed relief in mortgage rates.

NAR Chief Economist Lawrence Yun notes that the market is finally responding, saying, "As anticipated, falling mortgage rates are lifting home sales." The average 30-year fixed-rate mortgage rate dropped significantly to 6.35% in September, compared to the near-7% averages seen earlier this year. This rate reduction has led to substantial savings for buyers, making monthly payments more manageable and encouraging first-time buyers and investors to re-enter the market.

Inventory Rises, Urgency Eases

For the first time in five years, buyers are finding they have both more options and more time to make decisions. Housing inventory nationwide is 14% higher than a year ago.

This increase in supply, combined with lower rates, is fundamentally changing the buyer experience:

1. Less Rush: Buyers are no longer facing the intense urgency of previous years. The median time on the market for properties rose to 33 days in September, up from 28 days a year ago. This gives buyers the necessary time for careful inspection, due diligence, and calculated decision-making.

2. First-Time Buyers Return: This newfound balance is proving key for entry-level buyers. First-time buyers comprised 30% of existing-home sales in September, up significantly from 26% a year earlier, confirming that affordability improvements are helping a new wave of ownership.

Stability and the Power of Cash

While the market offers more breathing room for buyers, homeowners continue to fare well. The median sales price for all housing types hit $415,200 in September, representing a 2.1% increase from a year ago. While the pace of appreciation has eased, home values are still showing steady growth, contributing to overall household wealth and financial comfort.

For our Mid-Atlantic market, the Northeast region saw sales rise 2.1% and home prices appreciate by 4.1% compared to a year ago, illustrating strong, steady growth.

It is also important for financed buyers to note the continued strength of all-cash transactions, which comprised 30% of all sales in September. This powerful segment of the market—often high-wealth buyers and investors—can move quickly. As a buyer with financing, partnering with a knowledgeable agent is critical to submitting a strong offer that can compete effectively with these cash offers.

Your Next Move

This data confirms that the Fall market is shifting in favor of the prepared buyer, creating excellent windows of opportunity for smart investments and successful purchases. If lower rates have put a home purchase back within your reach, or if you are ready to sell your existing property and leverage your equity, now is the time to act.

Ready to find your footing in the Fall market? Contact me for a personalized strategy session today.