As summer draws to a close, the real estate market is a hot topic of discussion! During August, there was an increase in both mortgage rates and home prices in the U.S. compared to the same period last year. While these trends may seem daunting for potential homebuyers, there is a glimmer of hope on the horizon, especially as we transition into the fall season.

The dwindling housing supply has led to upward pressure on home prices. Yet for homebuyers seeking positive signs, there is reason for optimism. The trajectory of home prices is not projected to surpass the peak reached in June 2022, and as we move toward the end of the year, the median listing price is anticipated to experience its typical seasonal decline.

In this article , Realtor.com® economic data manager Sabrina Speianu emphasizes that lower home prices are on the horizon, signaling a shift in the market towards a more buyer-friendly direction. Despite the annual decrease in fresh listings, the gap between listings from this year and the previous year is shrinking. Additionally, buyers seeking alternative options to cope with low inventory can explore new construction opportunities, as new-home sales are on the rise compared to the lows experienced a year ago.

For eager buyers, the advice is clear: seize the opportunity when you find the right home. Although homes spent an additional six days on the market during the week ending August 12 compared to the same period in the previous year, this sluggish pace might be short-lived. As the fall season progresses, the market may regain its momentum, potentially resulting in homes selling even faster than they did a year ago.

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