As summer comes to a close, homeowners typically put the brakes on their moving plans, leading to fewer homes being listed in the fall. This is a well-established seasonal trend in real estate. However, this year broke from the norm. Just as the housing market usually begins to cool off, mortgage rates dropped, prompting more homeowners to list their properties.
Recent data from Realtor.com shows a notable shift: in September, new home listings surged by 11.6% compared to the same time last year.
As highlighted by the green circle in the graph below, the expected September slowdown in listings didn’t happen—in fact, the number of homes hitting the market actually rose. (See graph below).
Ralph McLaughlin, Senior Economist at Realtor.com, sheds light on the unexpected rise in listings:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
As mortgage rates dropped toward the end of summer, more sellers took advantage of the opportunity, bringing fresh inventory into the market.
What Does This Mean If You’re Looking To Buy a Home?
For buyers, this means more new listings to explore—fresh opportunities, not properties that have lingered unsold for months. However, it’s important to note that mortgage rates have been unpredictable, edging slightly higher in recent weeks. This could impact the number of sellers willing to list their homes as we head into fall, as rates continue to play a major role in driving homeowner decisions.
Why Buy Now, Rather Than Wait?
Whether you’re in the market for a starter home, looking to upgrade, or ready to downsize, the current inventory offers more options than you’ve seen in some time. If you find a home that suits your needs, it’s important to act quickly—these new listings won’t last forever. Staying informed about what’s available in your local area with the help of a trusted real estate agent is crucial.
Keep in mind that one month’s data doesn’t establish a long-term trend. The future supply of homes will likely depend on the direction of mortgage rates and other economic factors like inflation, employment, and Federal Reserve policies.
Given this, now may be the right time to make your move—while there’s an increase in available homes, and if you’re ready and able to buy this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), highlights the opportunity:
“The rise in inventory—and, more technically, the accompanying months’ supply—puts home buyers in a stronger position to find the right home at more favorable prices.”
Bottom Line
As mortgage rates dipped at the end of summer, more homeowners decided to sell, giving buyers more choices in today’s market. Let’s connect to ensure you have the right guidance to explore the fresh options before they’re gone.