What Real Estate Trends to Expect This Fall for REALTORS® 

Leaves are falling — along with rates. After weeks of declines, mortgage rates are finally within a comfortable range for many potential homebuyers. Although some are choosing to wait on the sidelines for further Fed rate cuts, many experts say now is the time to take advantage of improved market conditions and get ahead of the potential demand surge. So instead of the typical tapering off of activity, be prepared for some action this fall.

Are you ready with some fun and thoughtful ideas for your clients?

Here are four real estate trends blowing in with the cool weather:

1. Demand is up

With the 30-year mortgage at its lowest level in two years, housing costs are coming down and buyers are starting to return to the market. According to Redfin’s Homebuyer Demand Index, demand is up 9% month over month to its highest level since April. Homebuyers locked in more than twice as many mortgages than they did a month earlier on September 30, according to Optimal Blue data, and purchase applications are up. 

2. Buyers are gaining more bargaining power 

Home price growth is slowing due to loosening inventory, and buyers are gaining purchasing power and leverage when negotiating with sellers. Though not a total buyer’s market, sellers don’t hold all the cards anymore — and many are having to negotiate to strike a deal.

Buyers may be able to ask for more. Putting various contingencies in your buyer’s offer can help protect them, but including too many stipulations could keep them from winning a bidding war. As you know, it’s a tricky balance. So as the fall market fluctuates, it’s important to set proper expectations with your clients and prepare them for the incoming shift.

3. Homes are hanging on the market longer

Declining rates are encouraging some homeowners to sell, and inventories of new and existing homes have been on the rise over the course of 2024. On top of that, homes are selling at a slower pace than they have in the last five years, spending an average of 55 days on the market. This is more good news for buyers. But as you know, it doesn’t mean bidding wars are going away.

Supply and demand isn’t the only thing that causes bidding wars. If the seller prices their home appropriately, there’s a good chance they will receive multiple offers. You should always be ready to compete and help your buyer make their best possible offer. On the flip side, it’s also a good idea to know how to help a seller choose the best offer.

4. Be prepared for more rate cuts

According to Federal Reserve Chair Jerome Powell, we can expect two more rate cuts before the end of this year. With these predicted cuts and an election ahead of us, we should be ready for more than just the leaves changing this fall. 

If you need a partner to help ensure your clients get the care and attention they deserve, reach out to an Embrace Home Loans office in your area. You can also check our real estate agent resources for more guidance and fun tips.