As we head into the fall real estate season, the market is brimming with opportunities for both buyers and sellers. Top real estate experts, Tom Postilio and Mickey Conlon of Compass, bring over $3 billion in residential sales experience to the conversation, offering invaluable insights into the current market dynamics. With mortgage rates dropping and inventory levels evolving, the outlook is promising for those looking to capitalize on these favorable conditions.
Known for their roles on HGTV's Selling New York and PageSix TV's Billion Dollar Brokers, you'd be hard-pressed to find someone closer to the luxury housing market and its current trends. Buyers, sellers, are you ready?
The Forecast is Looking Bright
For the first time in a while, the changes in the real estate market are notably optimistic. "This has a lot to do with dropping mortgage rates, recently boosted even more by the Fed cutting interest rates by half a basis point, which was more than most experts were expecting," notes Conlon. "Mortgage rates began declining a few months ago in anticipation of the Fed's rate cut, and low inventory and high interest rates have been dogging the market nationally. These combined factors have been a disaster for first-time buyers because it’s really priced them out of the market."
He continues, "Falling interest rates are also a seller's greatest gift this season. First-time buyers who may have been priced out of the market due to inflated interest rates are stepping back into the market, and tight inventory in that segment of the market is keeping prices strong."
Postilio adds, "With the Fed's commitment to further reducing rates into 2026, we fully expect this fall's momentum to continue well into the foreseeable future. Also, as the gap between today's mortgage rates and the historically low rates many would-be sellers are clinging to continues to shrink, we anticipate a welcome increase in inventory. There’s so much pent-up demand and there has been for three years. The Fed announcement has given buyers permission to get off the fence."
Mortgage Rates Are Once Again Looking Favorable
We monitor the momentum from both sides of the sales process, but for buyers (looking for a loan), things are looking good. "It's important to understand that mortgage rates don't necessarily march in step with the Fed's actions, but the outlook for lower mortgage rates is positive," shares Postilio. "We expect that the average rate for a 30-year fixed loan will dip to just around 6% by the end of the year, though well-qualified borrowers are already enjoying rates in the mid-5s."
Conlon adds, "Mortgage rates are at the lowest they’ve been in about two years, inventory is increasing, inflation is easing and the Fed has indicated more cuts may be on the way before the end of the year – all adding up to make now the time to begin your home search."
What can a buyer do to get the lowest mortgage rate possible?
"Buyers who are getting the lowest possible rates typically have the best credit," shares Conlon. "Check your credit report to find out where you stand and verify the accuracy of the report. If there are damaging items reported that may be incorrect, it might be possible to challenge those items and have them removed from your report to boost your credit score. This is an important step that could make a significant difference in your monthly payment and overall cost of borrowing."
Shopping For Your Dream Home? Remember These Tips
- Be prepared for competition. "Home buyers are in the market right now in numbers we haven't seen in a long time. Buyers should expect competition to be fierce and plan accordingly," highlights Conlon.
- Get your credit in order so you can score a great rate. "If you're planning to finance, start to shop rates and team up with an experienced loan professional who can help navigate a path to the best possible rate," recommends Postilio.
- Be sure to be armed with a pre-approval letter from your lender before starting your search. "A pre-approval carries more weight than a pre-qualification, and it's important to show sellers that you're ready, willing, and able to do business in an expedient manner," notes Conlon.
- Work with an experienced real estate agent. Too many deals can go south without proper representation. "[You'll want someone] who can negotiate effectively on your behalf and guide you through the often complicated process of purchasing a home," shares Postilio.
Selling? It's Time to Focus on What Matters
Take advantage of the season when considering the presentation of your home to potential buyers. You can plan around any seasonal features: for example, keeping a fireplace burning, highlighting a big backyard or outdoor entertainment area, or commenting on an upgraded or efficient heating system – a significant consideration for many buyers.
"Also remember curb appeal," adds Postilio. "Maintain your lawn and any trees or shrubs, keep a tidy front door/porch area, and you can even incorporate tasteful seasonal decorations to give buyers a sense of home."
Should you consider election season if you're buying or selling?
We needed to check the pulse on this. Both agents agreed that there are always buyers and sellers who step back to the sidelines as we near a presidential election, but usually for reasons that have little to do with the state of the real estate market itself; however, they caution those who are considering holding out. "Waiting for whatever clarity the outcome of the election might provide could come at a cost. Buyers may miss out on the home of their dreams, and sellers may miss out on the buyer who is actively in the market today."
