Are Changing Seasons Affecting the Housing Market Prices?

As fall approaches and the leaves start to drop, it's natural to wonder: will housing market prices follow suit with the changing season? Lately, the market has favored sellers, but with the cooler weather, we might see homebuyers re-entering the scene, eager to lock in fixed-rate mortgages.

One positive sign for buyers is the increasing time homes are spending on the market. As properties linger longer, sellers may begin to question their pricing strategies, wondering if they’ve overestimated their home’s value. But what does this mean for turning listings into sales? While some sellers remain firm on their prices, the gradual dip in average home prices could signal a shift in expectations.

Even though we saw some price drops at the end of summer, sellers shouldn't get too comfortable. It’s still crucial for buyers to stay active and keep an eye on the market. The current lower rates offer first-time buyers a unique opportunity to score favorable deals, especially before sellers possibly raise prices as available inventory shrinks.

Though the scales are tipping slightly in favor of buyers, we’re not necessarily headed for a major shift. Senior Economist Orphe Divounguy notes that national home prices have fallen over 30%¹, which is a promising sign compared to the highs of the COVID-19 era, but rates remain elevated.

For Northeast homebuyers thinking about relocating should note that now is the time to buy as the market is slowly rising but not at a rapid pace, this creates the perfect opportunity to negotiate a price point most favorable to you!