It’s not a secret that the real estate market has seen major shifts so far this decade. Between the pandemic, inflation, and a variety of other economic factors, homebuyers are questioning – when is the best time to buy?
We’re happy to report that the Fall of 2025 will be the best time this year for potential buyers to finally secure the home of their dreams! With this being said, homebuyers should hit the ground running with their home search. Have your updated pre-approval secured and be ready to strike. The iron is hotter than it has been in years, for the next three months. Here’s why:
Inventory of Homes is Growing – Finally
Historically, the number of homes on the market reaches its highest immediately following Labor Day. Sellers who list during this time of year are typically at their most motivated, as they want to sell and settle into their new home before the holiday season begins. Take a look at this graph of Homes Listed Per Week in Massachusetts. You’ll notice that inventory rises in the spring and summer, but then there’s another big surge around Labor Day.
For homebuyers looking for homes in Connecticut, New Hampshire, Maine, Rhode Island, and South Florida, visit our Real Estate Update Pages for each state’s housing statistics.
What makes this fall especially advantageous for buyers is that there are more homes on the market now than since the pandemic. This is a welcome shift for buyers who have been searching for a larger selection of homes.
In the early 2020s, sellers were hesitant to list due to the pandemic, resulting in a drop in inventory. Even a few years later, sellers still didn’t want to sell, because they wanted to hold onto their pandemic era interest rate. As a result, the first half of 2023 saw the lowest number of homes listed in recorded history! Slowly over the last couple years, more and more homes started to go on the market, and we’re now seeing inventory back up to where it was pre-2020.
There is NOTHING Wrong with that House!
Something buyers and sellers will start to see happen as we head into fall, is that properties will stay on the market longer. More times than not, when a buyer sees that a home has been on the market for a while, they automatically think that something is wrong with it. However, that is a misconception! The absolute truth is NOTHING is wrong with THAT house. The fact that a property has lingered on the market a little longer than earlier in the year rarely has anything to do with the house itself and is a result of the seasonal change in the market. If a home was initially priced higher in the spring when there was less inventory, that price may need to be adjusted for the fall time, since inventory increases. So, if you see a home that’s been sitting on the market for a while, don’t dismiss it! This can actually be an opportunity for your expert REALTOR® to negotiate a potentially lower sale price.
There is Less Competition
In addition to more properties on the market, there will be less buyers when the fall season rolls around. With school beginning, many buyers with families have dropped out of the active search, either because they’ve recently closed on a home, or they’re waiting until the spring to resume their search. Many buyers also pause their search in preparation for the fall and winter holidays, giving motivated buyers a leg up in the market.
Pricing is Less Aggressive
Although home prices have been steadily on the rise over the last few years, late summer and early fall are when, historically, home sale prices begin to adjust down. This is due to inventory being at its highest, and sellers need to price strategically to stay competitive in the fall market. Take a look at the graph below. This depicts the Average Selling Price per Month in Massachusetts. You’ll see that year after year, home prices peak around mid-summer and then begin to make their way back down.
For homebuyers looking for homes in Connecticut, New Hampshire, Maine, Rhode Island, and South Florida, visit our Real Estate Update Pages for each state’s housing statistics.
Typically, the year is broken down into a seller’s market from January until about the summer when it begins to shift but is still a seller’s market, and by September, the market swings into the buyer’s favor for fall.
Interest Rates are Remaining Steady
According to Mortgage News Daily, interest rates are staying steady around the mid-6s, only a 0.07% increase year-over-year. Rising interest rates concerned many buyers in the early 2020s. Rates fell to below 3% in August of 2020 and were back up to over 5% by 2022. While they continued to slowly rise, we’re now starting to see somewhat of a plateau sitting around the 6s and 7s. The graph below shows the dip in rates during summer 2020, the dramatic rise in 2022, and then the stabilization beginning in late 2023.
Ready to Strike this Fall? Make Sure you’re Prepared!
Inventory is high, competition is low, but it’s still critical to make sure you have everything you need to strike when your dream home comes on the market. If you were pre-approved in the spring, you’ll need to reapply and get an updated pre-approval letter. Pre-approvals are usually only good for a few months, so make sure yours is up-to-date. Additionally, have your list of must-have features in your future home. This way, you can more quickly assess whether a home is right for you and put in an offer quickly if it checks all your boxes.
Finally, you’ll want to hire an expert REALTOR® who has experience navigating the fall market and can guide you to your dream home! As a REALTOR® with Lamacchia Realty, I’m equipped with the latest market insights and trends, ensuring that you make well-informed choices tailored to your unique needs and goals. Whether you’re a first-time homebuyer or looking to upgrade or downsize, my team and I are committed to providing personalized real estate consulting and representation to help you find the perfect home.