What Real Estate Trends to Expect This Fall for REALTORS® 

Leaves are falling — are rates dropping, too? Recently, mortgage rates have come down 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 — but housing costs remain high

After a series of rate cuts and cooling economic signals, the 30-year fixed mortgage rate has eased to around 6.2-6.4%, its lowest in nearly a year. This has spurred some activity: mortgage applications, both for purchasing and refinancing, have seen a noticeable uptick. Even so, demand remains uneven. Redfin’s Homebuyer Demand Index is down from a month ago, suggesting many potential buyers are still waiting for more favorable conditions.

2. Buyers are gaining more bargaining power

Home price growth has slowed, especially in many metro areas, and with inventory rising, buyers are having more negotiating power. Sellers are no longer guaranteed full asking price in many markets because homes are staying on the market longer and more are being discounted.

Buyers can increasingly request concessions such as asking for closing costs, repair credits, or incentives from sellers. But there is still competition in certain desirable neighborhoods and for move-in-ready properties, so including too many contingencies in an offer might reduce its appeal. It is important to set realistic expectations and prepare clients for a negotiated outcome.

3. Homes are spending more time on the market

Homes across the U.S. are taking longer to sell — the median days on market rose to about 60 days in August 2025, up from roughly 58 days in July.

Inventory has increased, while buyer demand has softened somewhat, causing homes to linger longer before going under contract.

That said, even with homes staying on the market longer, bidding wars still occur in hotter neighborhoods and for well-priced, move-in-ready listings. Sellers who price appropriately and maintain good listing condition may still attract multiple offers. Buyers should be prepared to make strong offers when needed, and sellers should know how to evaluate the best offer, not just the highest.

4. Be prepared for conditional rate cuts

On September 17, 2025, the Federal Reserve cut its policy rate by a quarter of a percentage point to the 4.00-4.25% range. Policymaker projections suggest there could be two more cuts by the end of this year.

Fed Chair Jerome Powell, however, emphasized that these expected rate cuts are not guaranteed and will depend heavily on how incoming economic data evolves, including inflation, labor market strength, and other macro risks.

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.

FAQs

What factors are driving higher homebuyer demand this fall?

Lower mortgage rates and seasonal activity are bringing more buyers back to the market, though affordability challenges still play a role.

Are buyers really gaining more bargaining power?

Yes. With inventory levels rising and price growth slowing, buyers are in a stronger position to negotiate, though competition remains in desirable areas.

Why are homes spending longer on the market?

Higher inventory and selective buyers are extending days on market. However, well-priced homes in prime locations can still attract multiple offers.

Will the Federal Reserve cut interest rates again this year?

Fed projections suggest more rate cuts are possible, but they are conditional on inflation and economic data. Even small cuts can impact buyer demand and affordability.

What do these trends mean for sellers?

Sellers should be prepared for more negotiations, possible concessions, and the need to price their homes competitively to attract offers.