The housing market is shifting again, and August’s Compass National Real Estate Insights show some encouraging signs for buyers and sellers alike. Here are the key takeaways you should know.
Interest Rates Are Finally Easing
Mortgage rates just hit their lowest point since last fall. If they continue to drop into the 6% range, we could see a strong boost in buyer activity this fall. For many families, affordability has been the biggest hurdle, and lower rates would make a meaningful difference in monthly payments.
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Home Prices: Slowing Growth After Years of Surges
After four straight years of rapid home price increases, appreciation is finally slowing down:
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Nationwide: Prices barely grew year-over-year in July, and condo prices actually dipped slightly.
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Seasonal note: Home prices usually peak in June, so the mid-summer slowdown isn’t surprising, but the pace of growth has clearly cooled.
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Long-term perspective: Even with slower growth, homeowners still benefit from equity gains and the financial stability that comes with owning rather than renting.
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Regional Differences Matter
Not every market is moving the same way:
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Southern states like Florida and Texas are seeing prices flatten—or even decline—after years of explosive growth. Rising insurance costs and a surge in new construction are part of the reason.
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The Northeast is holding strong, with steady appreciation in many metro areas.
This shows how important it is to look at your local market rather than just the national headlines.
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More Homes for Sale = More Choices for Buyers
One of the biggest shifts this year has been the surge in available listings. Buyers now have more choices and less urgency to rush into a decision. As a result:
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Sales are down compared to last year.
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Price reductions are at their highest level since 2018.
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Well-prepared and well-priced homes are still selling quickly—often above asking.
What this means for you:
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Sellers should price right from the start to capture buyer attention.
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Buyers should watch for homes with recent price cuts or longer days on market—sometimes those can be hidden gems.
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New Construction Is Shaping the Market
Builders are offering big incentives—like covering closing costs or lowering monthly payments—to move their new-home inventory. This is especially common in southern states where new construction has been booming. If you’re considering a new build, now could be the time to explore your options.
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Debt & Financial Stability
Higher credit card, auto, and student loan debt is keeping some buyers on the sidelines. But overall, the housing market remains stable: most homeowners still have low mortgage rates, more homes are owned outright, and foreclosure rates remain near historic lows.
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Looking Ahead
Tariffs and their impact on inflation could influence where interest rates go from here. But for now, falling rates and more choices for buyers are setting the stage for an active fall market.
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What This Means for Chicagoland Buyers & Sellers
Here in the Chicagoland area, we’re seeing many of the same national patterns play out—but with a local twist. Inventory has climbed, giving buyers more options across suburbs like Arlington Heights, Barrington, Buffalo Grove, and beyond. Sellers are still finding success when homes are priced and prepared well, but buyers now have more leverage and time to make thoughtful decisions.
If interest rates keep easing, this fall could be one of the most active seasons we’ve seen in years. Whether you’re considering a move-up, downsizing, or exploring first-time homeownership, staying ahead of these shifts will help you make the most of the opportunities ahead.
Photo Courtesy of Tina Ginter Photo
