6 Fall Trends Homebuyers and Renters Need To Know Before Braving the Market
Written by
G. Brian Davis
Edited by
Jenna Klaverweiden
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In September, the Federal Reserve cut the federal funds rate for the first time this year. Yet Freddie Mac reported that mortgage rates actually rose in the wake of the Fed’s rate cut — underlining that loan rates follow Treasury yields, not the federal funds rate.
While buyers may not be able to count on lower loan rates in the immediate future, the housing market has noticeably shifted toward a buyer’s market. Keep the following trends in mind this fall as you hunt for the perfect home.
Positive but Slowing Home Price Growth
The S&P Cotality Case-Shiller Home Price Index showed home prices rose 1.3% year over year in August. Even so, home prices actually dropped 0.3% for the most recent month.
According to Cotality, about one-fifth of cities have seen home prices decline over the prior 12 months as of September — and it doesn’t take a detective to understand why.
Inventory Up, Sales Down
Sellers, sick of waiting around for lower mortgage rates, have given up and started listing their homes. Inventory for sale is up 26% through September, according to Cotality.
Despite more homes for sale, actual home sales fell 4% from January to July. Buyers appear unimpressed by the combination of high prices and high interest rates, and many remain on the sidelines.
“Homes are sitting longer, and sellers are starting to get desperate,” said Phil Green, real estate investor and CEO of I Buy SD. “That translates to less pressure for buyers to waive contingencies and better chances when asking for repairs or concessions.”
Days-on-Market Rising
With inventory up and buyers not biting, homes are sitting on the market longer.
Data reported by the Federal Reserve shows listings sitting for an average of 62 days in September 2025. Compare that with 55 days in September 2024, 48 days in September 2023 and 47 days in September 2022.
New Construction Falling
Seeing those trends, homebuilders have pulled back. According to Federal Reserve data, in February, builders pulled permits for 992,000 new homes. By August, that had fallen nearly 14% to 858,000. It marks a steep drop since early 2022, when builders pulled 1.2 million permits a month.
“Homebuilders are motivated to sell and close homes,” explained Scott Menard, president of Homes Built for America. “They are offering incentives including reduced prices for a quick close, closing cost credits, mortgage rate buy-downs and no-cost upgrades.”
Insurance and Tax Escrows Soaring
It isn’t just higher home prices that have hurt affordability. Property taxes and homeowners insurance premiums have also ballooned over the last few years.
Cotality reported that monthly escrow payments have exploded 45% from 2019 to 2025.
Dipping Rents
On the renting side, median rents have fallen 0.8% over the last year, according to ApartmentList.com. Vacancies sit at 7.1%, a record high for its index.
Danny Fishman, CEO of GAIA Real Estate, urged renters to get more aggressive in negotiating. “Get a pulse on concessions in your submarket, and try to negotiate lower rents. Consider locking in today’s rents with a two-year lease,” he said.
Housing markets on both the buying and renting sides have softened, leaving plenty of room for negotiation by house hunters.
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