6 Fall Trends Homebuyers and Renters Need To Know Before Braving the Market

Core Insights - The Federal Reserve cut the federal funds rate for the first time this year, but mortgage rates rose, indicating that loan rates follow Treasury yields rather than the federal funds rate [1] Housing Market Trends - The housing market is shifting towards a buyer's market, with home prices showing positive but slowing growth, as evidenced by a 1.3% year-over-year increase in the S&P Cotality Case-Shiller Home Price Index for August, although prices dropped 0.3% in the most recent month [3] - Approximately one-fifth of cities have experienced home price declines over the past 12 months as of September [3] - Inventory for sale has increased by 26% through September, while actual home sales fell by 4% from January to July, indicating buyer reluctance due to high prices and interest rates [4] Market Dynamics - Homes are remaining on the market longer, with an average of 62 days in September 2025 compared to 55 days in September 2024, 48 days in September 2023, and 47 days in September 2022 [6] - Sellers are becoming more desperate, leading to less pressure on buyers to waive contingencies and better opportunities for negotiating repairs or concessions [5] New Construction Activity - Homebuilders have reduced new construction activity, with permits for new homes falling nearly 14% from 992,000 in February to 858,000 in August, marking a significant decline from 1.2 million permits per month in early 2022 [7] - Builders are motivated to sell and are offering various incentives, including reduced prices for quick closings, closing cost credits, mortgage rate buy-downs, and no-cost upgrades [8]