In the past few months, the housing market has posed significant challenges for prospective home buyers. Americans are facing the most unaffordable market they've ever encountered, leading to a decrease in real estate demand. As the peak season for home buying begins to wind down, many potential home buyers are curious about what the upcoming fall market will hold. In this blog, we share with you the key insights that you need to know about the 2023 fall housing market!

Reduced Competition

Traditionally, the real estate industry designates summer as the peak season when the market experiences significant growth. However, with the start of the new school year in the fall, the number of home buyers typically decreases. This year, given the recent surge in home prices, the current level of competition is even lower than usual and that could mean a very low amount of competition this fall.

For home buyers, this situation presents a distinct advantage, as it enhances the opportunity to negotiate with sellers. With reduced competition, the risk of being outbid on a house is minimized, enabling buyers to make more competitive offers and potentially secure a property at a lower price.

Anticipated Decline in Selling Prices and Mortgage Rates

Several expert sources, including Realtor.com and the National Association of Realtors (NAR), have projected a gradual decrease in mortgage rates throughout the rest of 2023, primarily due to the deceleration of the inflation rate. This anticipated decline in mortgage rates is expected to influence selling prices, offering hope to prospective new homebuyers that the cost of purchasing a home will not continue to rise rapidly. For those seeking to enter the housing market this fall, this optimistic prediction signals a promising chance to purchase homes at more affordable prices soon.

Decrease in Mortgage Rates Could Increase Market Offerings

Homebuilding has been on the rise to address the shortage of existing homes and bridge the gap between supply and demand within the housing market. As mortgage rates begin to decline, it is likely that more existing home listings will become available. This unlocking of inventory will be a significant step in the right direction for the housing market and will offer favorable prospects for potential buyers, making housing more affordable than it is currently.

Anticipate a promising housing market this fall, presenting excellent opportunities for prospective home buyers like you. If you are considering buying a home, reach out to us today at American State Bank, and explore our range of home loan options tailored to suit your needs!