S
ummer’s housing market has stalled, with sales barely moving as buyers wait for better terms. Yet recent data hint that the fall could revive activity. Mortgage rates have slipped below 6.5% from nearly 7% earlier in the year, and loan applications for purchases jumped 18% year‑over‑year last week, signaling that financially ready buyers are poised to act when the right home appears.

    Existing‑home sales, which cover single‑family homes, townhomes, condos and co‑ops, slipped 0.2% from July but remain 1.8% higher than a year ago, according to the National Association of REALTORS® (NAR). “Higher rates and limited inventory have kept sales sluggish, but as rates ease and more homes hit the market, we expect a rebound,” said NAR chief economist Lawrence Yun.

    The 30‑year fixed mortgage has fallen below 6.5%, and mortgage‑bankers data show a sharp rise in purchase applications, underscoring that buyers are ready to move once they find a suitable property.

    Inventory is expanding, giving buyers more choices. August inventory rose 12% YoY, and the median time on market climbed to 31 days from 26 days a year earlier. This slower pace may attract first‑time buyers, who made up only 28% of August transactions—down from the pre‑2008 average of 40%. Affordable‑home sales remain constrained by limited supply, Yun notes.

    A recent housing report projects that the fall will bring more listings, lower prices and less competition, creating a prime buying window. The best period is identified as the week of Oct. 12‑18. Alexa Kebalo of eXp Realty, 2025 Connecticut REALTORS® president‑elect, calls it a “second spring market.” She notes that buyers are regaining negotiating power, with inspections and repair requests back on the table and a better chance to secure a home at a desired price.

    Home prices stay resilient. The median existing‑home sales price in August was $422,600, up 2% YoY. Distressed sales—foreclosures or short sales—make up only 2% of transactions, a historical low. Homeowners have seen a cumulative 49% price appreciation from July 2019 to July 2025, and average wealth has risen $140,900 over the past five years. Cash buyers, who accounted for 28% of August transactions, continue to dominate the market, reflecting the equity many homeowners now possess.

    Regional trends vary. The Northeast, with the tightest inventory, saw a 6.2% month‑over‑month price rise to $534,200. Existing‑home sales fell 4% in August, but remain 2% below last year. The Midwest offers the lowest prices, with a median of $330,500—22% below the national median—and sales rose 2.1% last month, up 3.2% YoY. The South’s sales dipped 1.1% to an annual rate of 1.83 million, yet remain 3.4% above last year, with a median price of $364,100. The West’s sales increased 1.4% to an annual rate of 730,000, down 1.4% YoY, and the median price is $624,300, up 0.6% from a year ago.

    Overall, the market is holding steady but poised for a fall upswing as rates decline, inventory grows, and buyers regain leverage.