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    Fall 2025 Housing Market Report

     

    The transition into fall typically brings cooler temps and with it, a cooler housing market. This might look like longer days on the market, increased price adjustments, and a bit more room to negotiate. This year, there is also a new dip in mortgage rates. Here’s what sellers, buyers, and agents can expect and how to use this knowledge to navigate the market to your advantage.

    The typical fall housing market pattern

    Summer is generally the busiest time for the U.S. housing market. While a bit calmer, fall is still active. This brings advantages for buyers who want more time to evaluate, sellers who market their assets effectively, and agents who set expectations early. 

    Here’s what to expect:

    • Less competition. Activity tends to slow down once school is back in session, giving buyers more breathing room to compare homes and make decisions.
    • More days on the market. Homes generally take longer to sell in fall than in summer, which brings more room to negotiate. Longer sell times also means higher inventory overall, giving well-marketed listings (great photos, transparent condition, clear affordability) the opportunity to stand out from the crowd.
    • Lower prices. With the holidays quickly approaching, there is motivation to move quickly. These aligned timelines can unlock win-win solutions for buyers and sellers, such as modest price reductions and more flexible terms.

     

    What’s different in 2025

    • Mortgage rates decreased. Freddie Mac’s Primary Mortgage Market Survey shows the 30-yr fixed mortgage rate at 6.26% for the week ending Sept 18, which is the lowest in nearly a year.
    • Buyer activity increased. Mortgage applications jumped ~29.7% week over week in mid-September as rates decreased. (MBA)
    • Interest rates were cut. The Federal Reserve approved a quarter-point rate cut on September 17. However, mortgage rates mostly follow the 10-year Treasury yield, so this doesn’t necessarily mean they will have the same trajectory. (Reuters)

     

    What this means for you

    Sellers: make the monthly payment the headline

    • Make affordability obvious. Buyers shop the monthly payment, not just the list price. With the recent rate cuts, be sure to illustrate the monthly payment at the current average rate on a typical down payment. If your existing loan is FHA/VA/USDA, check assumability. A qualified buyer may be able to take over your low rate (with servicer approval) which can save them hundreds on their monthly payments when compared to taking out a new loan. This can help you reach 5x more buyers, maximizing exposure and reach of your listing.
    • Price to today’s comps. Set your list price based off of like-for-like sales from the past 4–8 weeks (vs earlier in the year). If you need more attention fast, tiny, targeted reductions (or credits) can beat big slashes. For example, dropping the list price by $10–$15k cuts $60–$90 off the monthly payment.
    • Lead with condition and confidence. Pre-inspect your home, fix known issues, gather permits and receipts, and lightly stage for great photos. These can help make your listing more attractive by instilling trust and confidence in buyers.

    For more on how to navigate the current housing market as a seller, check out our recent Seller Market Update.

    Buyers: take advantage of the breathing room

    • Come prepared. While the slower pace of fall gives you more time than spring, competition can pop temporarily after a rate dip. Make sure you are pre-approved so you can move quickly, yet thoughtfully.
    • Shop monthly payments. Small market dips can provide savings, but other avenues can prove more savvy. Explore and compare monthly payments on non-conventional loan options such as assumable mortgages, seller financing, and temporary buy downs.
    • Watch mid-October. National research points to this time as an unusually favorable most years, with more active listings, less competition, and small seasonal price savings. Local timing can vary slightly, but the theme holds.

    Agents: cut through the noise

    • Set expectations. Make sure your buyers and sellers understand the differences in the market coming off of summer, from slightly longer days on the market to better term negotiation to easier scheduling of showings, inspectors, and movers.
    • Provide payment clarity. Help buyers understand a home’s monthly payment (P&I only), with a footnote for taxes/insurance/HOA and 2–3 financing options. This gives buyers a better picture of affordability than just the list price, which doesn’t take things like interest rates or non-conventional purchasing options into account.
    • Offer market education. Between mortgage rate dips and Fed rate cuts, there is a lot of news surrounding the housing market right now. Help your clients understand what this means so they can decipher the weekly headlines to better navigate today’s dynamic market.

     

    The fall 2025 takeaway

    Fall usually brings longer days on market, more price flexibility, and calmer shopping. This gives listings that properly market attractive features, such as lower monthly payments, a big opportunity to stand out. This year, there is also a fresh rate dip that is increasing buyer activity. Staying aware of these trends enables you to use them to your advantage and successfully navigate this season’s housing market.