Homeowners generally put the brakes on their moving plans as summer comes to an end, leading to a drop in the number of homes listed for sale in the fall. This is a common seasonal pattern in real estate. However, this year, with mortgage rates decreasing around the same time that listings typically fall, we saw a difference. More homeowners opted to sell, resulting in an increase in available homes on the market.

The latest data from Realtor.com shows that in September, there was an 11.6% increase in the number of homes available for sale compared to a year ago.

The green circle in the graph below indicates that, contrary to the usual trend, there wasn't a typical drop in homes hitting the market this September; in fact, that number increased. Take a look at the graph below for more details.

Ralph McLaughlin, Senior Economist at Realtor.com, discusses the unexpected increase in the market. He attributes this rise to various economic factors that have influenced buyer behavior in ways not typically seen during this time of year.

““This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
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— Ralph McLaughlin, Senior Economist at Realtor.com

As rates decreased toward the end of summer, more buyers entered the market and chose to make their moves.

What Does This Mean If You’re Looking To Buy a Home?

It gives you more new choices to pick from than you've seen in a long time—rather than the ones that have just been sitting around without selling.

Mortgage rates have been pretty unpredictable lately, going up a bit over the past few weeks. This could make some people hesitant about selling their homes in the near future. Right now, mortgage rates are really influencing the decisions homeowners are making.

Why Buy Now, Rather Than Wait?

If you're in the market for your first home, considering an upgrade, or looking to downsize, you have a wider selection of homes available right now. Keep in mind that these new listings won't last long. To make the most of your search, it's important to stay informed about what's available in your area, and having a trusted agent by your side can really help.

One month of data isn’t enough to establish a trend. So, what’s next? The future of home sales will really depend on mortgage rates and the economic factors influencing them, including inflation, employment rates, and how the Federal Reserve responds.

Now could be a great time for you to jump in, especially since there are more homes on the market. If you’re ready, willing, and able to make a move this fall, this might be your moment.

Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), shares his insights:

““The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
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— Lawrence Yun, Chief Economist at the National Association of Realtors (NAR)

Bottom Line

With rates dropping at the end of summer, we’re seeing sellers slowly return to the market. This gives buyers more options to choose from right now. Let’s get in touch so you have a reliable advisor to help you explore these new opportunities before they’re gone.