As the calendar flips toward fall, the national housing market is sending out some mixed signals—and a few glimmers of hope. According to Realtor.com’s latest weekly report, home prices stalled in early September as demand cooled and inventory growth slowedrealtor.com. Yet, a long‑awaited Federal Reserve rate cut just took effect, and mortgage rates have been easing for four straight weeksrealtor.com. For buyers and sellers frustrated by a “cruel summer,” there’s reason to believe an autumn reboot is on the horizon.

A summer stalemate gives way to hints of softening

The report paints a picture of a market stuck in neutral. After months of seller frustration and buyer reluctance, the week ending Sept. 13 saw the housing market “moving at a halting pace,” with early signs of price softeningrealtor.com. Sellers began recalibrating prices to draw attention, but high mortgage rates and affordability pressures still kept many buyers on the sidelinesrealtor.com.

Heading into fall, inventory is at its highest level since before the pandemic, giving shoppers more options and more time to make decisionsrealtor.com. Markets in the South and West, including Miami, have even shifted into buyer‑friendly territoryrealtor.com. And with rent prices down for two years, more renters are feeling optimistic about becoming homeownersrealtor.com. All of this suggests that the seller‑dominated cycle of the past few years is slowly balancing out.

Rates drift down as the Fed loosens policy

The big news driving optimism is the Federal Reserve’s decision to cut its benchmark rate by a quarter of a percentage point, down to 4%–4.25%, marking the first reduction since late 2024realtor.com. The cut was widely anticipated and mostly baked into mortgage rates, yet it signals the start of an easing cycle that could include two more cuts by year’s end. Mortgage lenders are already responding: Freddie Mac reports the average 30‑year fixed loan at 6.26%, the fourth consecutive weekly droprealtor.com. Realtor.com’s economists expect these lower rates to produce a modest increase in home sales over the next few monthsrealtor.com.

Inventory climbs—but new listings remain thin

Despite the slowing pace of sales, new home listings edged up 2.1% year over year after a rare drop the week beforerealtor.com. Even so, the number of fresh options remains below typical spring and early‑summer levels, and many homeowners are still hesitant to list in a cooling marketrealtor.com. The total number of properties on the market climbed 17.6% versus last yearrealtor.com, marking the 97th straight week of annual inventory gainsrealtor.com. There are now roughly 1.1 million homes for sale, the twentieth week above the million‑listing thresholdrealtor.com. But because active inventory is growing faster than new listings, more homes are sitting on the market longer, with the typical house waiting six days longer for a buyer than a year agorealtor.comrealtor.com.

Regional nuances and what they mean locally

Not all markets are moving in lockstep. The Northeast and Midwest still face tight inventory and strong demand, while the South and West are seeing an abundance of listings and slower salesrealtor.com. As a Realtor serving the Chicago and Downers Grove area, I see these contrasts firsthand. Chicago’s suburban market has cooled from its feverish pace, yet desirable neighborhoods still attract multiple offers. Inventory is higher than a year ago, but quality listings remain scarce.

These national trends mean buyers can be choosier and negotiate more effectively—especially in regions leaning toward a buyer’s market. Sellers, meanwhile, may need to price homes more competitively and be patient as properties sit longer. If you’re renting, falling rents and easing mortgage rates could make the leap to ownership more attainable. And if you’re thinking about selling, now is a good time to prepare your home for the busy fall season, when experts believe the “best time to buy” will arrive in Octoberrealtor.com.

Final thoughts

The Federal Reserve’s latest rate cut doesn’t change everything overnight, but it does signal a new direction after a summer stalemate. With inventory rising, prices plateauing and borrowing costs easing, the market is inching toward balance. Whether you’re buying, selling or simply watching the market, staying informed is crucial. Feel free to reach out if you’d like to discuss how these trends affect your neighborhood—especially here in Downers Grove and the western suburbs of Chicago. As always, I’m here to help you navigate the numbers and make the move that’s right for you.