Peak homebuying season often gets all the attention, but the frenzy of summer isn't always the best time to make a move. While families with children may prefer relocating when school is out, buyers who wait until fall often discover unexpected advantages. Cooler competition, growing inventory, and more negotiable sellers can make autumn one of the most favorable times of year to buy a house.

In 2021 and 2022, the market was brutal for buyers. Limited listings and homeowners clinging to their low-rate mortgages fueled bidding wars that drove prices skyward. Sellers had the upper hand, and buyers were left with few options. That dynamic has begun to shift. Sellers are now facing the reality that it isn't 2022 anymore, and many have had to reduce asking prices or negotiate more openly. While buyers don't hold all the power, they are entering what some economists call a "balanced" market, where leverage is beginning to tilt in their favor. With the guidance of a skilled agent, today's buyers may find opportunities to negotiate better prices, request repairs, or enjoy greater flexibility with closing terms.

Part of this new landscape stems from a rebound in housing supply. The number of homes on the market has climbed to its highest level since May 2020. In July 2025, the National Association of Realtors reported 4.6 months' supply of homes available, signaling that buyers finally have more choices. This easing of inventory gridlock has had ripple effects. People are more willing to move, and once buyers see friends or family finding homes, they often gain the confidence to take the plunge themselves. Real estate agents describe this as a bandwagon effect, where momentum builds as more deals close and more listings appear.

Price trends also add to fall's appeal. While homes remain expensive — the median sales price in July stood at $422,400, up nearly 56 percent since 2020 — the pace of growth has cooled considerably. In July, home prices inched up only 0.2 percent year over year, and in many local markets prices are already falling. Buyers who shop in the fall can also benefit from seasonal price reductions as sellers cut asking prices on properties that sat unsold during the summer rush. Even moving costs can be lower in autumn compared with peak summer months.

The wild card for buyers is mortgage rates. Forecasts suggest modest declines by late 2025, with Fannie Mae projecting average rates near 6.5 percent and the Mortgage Bankers Association predicting 6.6 percent. While these figures remain high compared to the ultra-low rates of the past decade, even a fraction of a percentage point can make a meaningful difference in monthly payments. Experts caution, however, that buyers shouldn't try to time the market too precisely. If a home fits both your needs and your budget, that may be the best signal to act. Future rate drops could provide an opportunity to refinance, but waiting too long may mean facing renewed competition if rates fall and more buyers return.

Taken together, these factors create one of the most buyer-friendly markets since before the pandemic. With more homes for sale, slower price growth, and the potential for slightly lower borrowing costs ahead, fall presents a unique window for buyers ready to make a move. For those who sat out the summer, patience may prove to have been a smart strategy.

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Mortgage rates have inched down to their lowest levels of 2025, signaling potential relief for weary homebuyers and sparking cautious optimism in the real estate market. According to the latest Freddie Mac data, the average 30-year fixed mortgage rate dropped to 6.58% from 6.63% the previous week. Meanwhile, the 15-year fixed mortgage, often favored by homeowners looking to refinance, fell more sharply to 5.71% from 6.63%. These are the lowest rates recorded since October of last year.

Although today's rates remain slightly above their historical average since 1991, many analysts believe they could decline further in the months ahead. The key driver? Shifts in the yield on the 10-year U.S. Treasury note — a benchmark that plays a pivotal role in setting mortgage rates.

Why Mortgage Rates Are Trending Lower

Mortgage rates are closely tied to the 10-year Treasury yield, with lenders adding a spread to account for the risks of lending, including inflation and broader market uncertainty. While the Federal Reserve has already cut its benchmark interest rate twice in the past year, Treasury yields stayed stubbornly elevated into early 2025, reflecting investor concerns about inflation and U.S. government debt.

Recently, however, inflation has cooled, and signs of a slowing economy have renewed investor confidence that additional Fed cuts are on the horizon. At the start of this week, the 10-year yield stood at 4.287% — down from above 4.5% just months ago. With the Fed hinting at another possible 25 basis-point cut in September, the likelihood of continued downward pressure on mortgage rates has grown stronger.

What Comes Next for Interest Rates

Looking forward, the Fed is expected to consider as many as six rate cuts through the end of 2026, though these moves will ultimately depend on economic performance. The central bank's dual mandate — keeping inflation under control while supporting maximum employment — means any surprises in the job market or price levels could alter the path.

If rates continue to fall, housing affordability could improve modestly, giving sidelined buyers a reason to re-enter the market. But the impact will likely be gradual, as home prices remain historically high.

The State of the Housing Market

Despite softer borrowing costs, the housing market remains in a holding pattern. Home prices have edged down from their pandemic-era peak: the median sales price fell to $410,800 in the second quarter of 2025, down 7.2% from the all-time high of $442,600 in late 2022, according to Federal Reserve Economic Data.

Still, many sellers are reluctant to accept lower offers. With fewer active buyers, homes are taking longer to sell, and some listings are being pulled from the market altogether. Redfin data shows that in June, home sales dipped 1.3% year-over-year, while new listings fell 3.4%.

The recent decline in mortgage rates marks a turning point after years of elevated borrowing costs. If rates continue trending lower, they could breathe life back into the housing market, enticing both first-time buyers and current homeowners considering a move. For now, buyers may find themselves with slightly more leverage, while sellers may need to temper expectations as the market adjusts to this new reality.

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Housing costs have surged more than 50 percent since the pandemic began, and mortgage rates remain close to 7 percent, keeping affordability a challenge for many buyers. Yet one surprising shift has emerged: the traditional price gap between new-construction homes and existing homes is narrowing. In several markets, new builds are not only more competitively priced but also offer better value per square foot, often paired with enticing incentives from builders.

For years, new-construction homes commanded a steep premium. Higher prices were driven by modern amenities, rising material and labor costs, and strong demand. But that dynamic is changing. According to Realtor.com, median listing prices for new homes dropped year over year in 30 of the nation's largest metro areas during the most recent quarter. The median listing price of a new home in the second quarter of 2025 was roughly $450,000, compared with $418,000 for an existing home. While the sticker price remains higher, buyers are finding more competitive deals when factoring in space and incentives.

The most notable declines have been concentrated in the South and West, where competition and softer demand have pressured builders to adjust. In markets like Little Rock, Arkansas; Austin, Texas; and Jacksonville, Florida, prices for new homes fell between 7 and 15 percent. Danielle Hale, chief economist at Realtor.com, emphasized the importance of this trend, noting that affordable new construction can help ease the nation's housing shortage, which still hovers near 4 million homes.

In terms of value, new builds are often more cost-efficient per square foot. National averages show that new homes are listed at about $218 per square foot, compared with $226.56 for existing homes. Builders have also responded to affordability concerns by making homes smaller. A report from John Burns Research & Consulting found that nearly one-quarter of new homes in 2024 were downsized to reduce costs. Rather than shrinking individual rooms, many architects redesigned layouts to eliminate unnecessary hallways and maximize usable space.

Incentives have become another powerful tool for boosting sales. Builders are offering perks such as design upgrades and, most notably, mortgage-rate buydowns. These buydowns, in which builders cover the difference between market mortgage rates and discounted rates offered to buyers, have proven especially popular. A recent National Association of Home Builders survey found that 61 percent of builders are using such incentives. Buydowns can lower monthly payments significantly, making homeownership more attainable despite elevated interest rates.

While these offers provide short-term relief, experts warn that temporary buydowns may carry risks. If rates remain high or reset upward, buyers could face higher payments in the future. Even so, incentives have played a major role in supporting new-home sales at a time when affordability challenges continue to weigh on the market.

Overall, while housing remains expensive, the evolving dynamics of new construction — including lower prices in certain regions, smaller but more efficient designs, and widespread builder incentives — are creating fresh opportunities for buyers. For those willing to consider new builds, the gap between affordability and aspiration may be narrower than it has been in years.

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Should You Buy a Second Home in Retirement?

Falling mortgage rates and more flexible sellers are giving retirees new opportunities to explore the dream of owning a second home. According to a recent Redfin report, interest rates have dipped to their lowest levels in nearly a year, and with more sellers willing to negotiate on price, the timing looks better than it has in a while.

But before diving into a second purchase, retirees should weigh the financial implications, lifestyle fit, and long-term benefits carefully. Here's a breakdown of what to consider — along with the pros and cons of adding a second property to your retirement years.

Key Steps to Buying a Second Home in Retirement

1. Protect your retirement savings Avoid tapping into 401(k) or IRA funds to cover the purchase. Early withdrawals (before age 59½) trigger penalties and taxes, and even later withdrawals can push you into a higher tax bracket.

2. Define the purpose of the home Decide if it will be a vacation getaway, a future primary residence, or an investment property. Many buyers in their 50s and 60s purchase second homes primarily for personal use, but having a clear purpose upfront prevents regret later.

3. Match the home to your lifestyle Think beyond today's wants — consider accessibility features like single-level layouts, proximity to healthcare, and amenities you'll need as you age.

4. Explore your financing options Paying in cash can simplify the process and preserve retirement income for other needs. If you plan to finance, know that second-home mortgage rates are typically 0.5% higher than primary residence loans, averaging 6%–7% in 2025.

5. Research local markets Since demand for second homes has cooled, more listings are seeing price cuts — 23% in January 2025 alone. Investigate trends and, if you plan to rent the home, study the potential for rental income.

6. Budget for hidden and ongoing costs Beyond the purchase price, plan for maintenance, insurance, utilities, and taxes. Homes in high-risk areas, such as coastal Florida, often carry especially high insurance premiums.

Benefits of Owning a Second Home

• A personal retreat: A place dedicated to your own relaxation, vacations, or seasonal living.
• Financial leverage: Retirees with strong equity in their primary residence sometimes buy their second home outright, often with cash.
• Peace of mind: Many buyers simply want a home that feels like theirs, free from work or family obligations.
• Long-term appreciation: Homes historically rise in value — NAR data shows average annual appreciation of 6% to 7% over the past decade.
• Tax advantages: Renting for more than 14 days per year can unlock deductions for expenses, and relocating your permanent residence to a lower-tax state can cut retirement costs.

Risks and Challenges

• Ongoing expenses: Maintenance, property management, and unexpected repairs add up.
• Reduced liquidity: Retirees often live on fixed incomes; tying up funds in real estate can reduce financial flexibility, especially in emergencies.
• Opportunity costs: Investing $500,000 in an S&P 500 index fund could yield nearly $2 million in 20 years, compared with roughly $1.3 million from a home appreciating at 5% annually.
• Time and effort: Managing a second home — especially one located far away — can become overwhelming without help.

A second home in retirement can be a wise investment, a source of rental income, or simply a peaceful escape. But it can also become a costly burden if purchased without careful planning.

As real estate investor Jacob Naig notes, the success of the decision depends on clarity of purpose: "Buying a second home can be both a sound investment for retirees or an unexpected headache, depending on how the decision was made and for whom it was made."

Before moving forward, evaluate your financial security, your long-term retirement goals, and your tolerance for risk. Done thoughtfully, a second home can enhance your golden years — not complicate them.

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