Real Estate Rundown October 2025

Photo By Pasqualino Capobianco via UnSplash

August Pending Home Sales Show Growth

Pending home sales saw a modest rebound in August, rising 4% from July and nearly 4% year-over-year as easing mortgage rates gave buyers some breathing room. The Midwest, South, and West all posted monthly gains, while the Northeast slipped. Analysts note the uptick could translate into stronger closings this fall, though affordability challenges and limited supply remain major hurdles. Inventory has improved in some regions, but delisting’s are on the rise as sellers hold out for higher prices. With closed sales still sluggish and resale activity at its lowest pace in decades, the housing market faces an uphill climb despite signs of renewed momentum.

What The Rate Cut Means for Housing

The Federal Reserve cut its benchmark interest rate by a quarter point and signaled two more cuts this year, but the move isn’t expected to drive mortgage rates much lower. While Treasury yields have slipped recently, limited Fed demand for mortgage-backed securities will cap how far mortgage rates can fall. Current rates—lower than in recent months—are helping ease costs for buyers and boosting builder confidence, though sellers remain hesitant, with new listings at record lows for August. As the housing market heads into its slower fall season, small rate shifts may encourage some buyers at the margins, but broader economic uncertainty continues to weigh on overall activity.

Home Prices Still on The Rise

U.S. home prices inched up 0.2% in August from July, marking the first acceleration in monthly growth since January, according to Redfin’s Home Price Index. Year-over-year, prices rose 3.1%—the slowest pace recorded in the index’s history dating back to 2012. More than half of major metros saw monthly declines, with San Diego, Los Angeles, and Fort Lauderdale posting the largest drops, while San Francisco and Philadelphia led gains. Cooling demand, elevated rates, and rising inventory have slowed price growth, but economists note that this “middle ground” may offer opportunities: buyers gain leverage with less competition, while sellers who price realistically can still find success.

What Could Be Ahead for the Fall in Real Estate

After a slow summer, signs of a “second spring market” are emerging as falling mortgage rates spark fresh buyer interest and more listings hit the market. Existing-home sales were mostly flat in August, but loan applications for purchases jumped 18% year-over-year, suggesting buyers are ready to act when the right homes appear. Inventory rose 12% from a year earlier, giving shoppers more choices and time to negotiate—especially first-time buyers who’ve been sidelined in recent years. Prices remain resilient, with the national median at $422,600, though affordability challenges persist. As fall approaches, easing rates, more options, and renewed negotiating power could give buyers their best window of opportunity in months.

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