Will bidding wars continue? Will home prices stay elevated? Will home buyer demand remain strong? Heading into the fall season, economists are optimistic about the market’s direction considering its unpredictability since the beginning of the pandemic.

For the most part, they agree it won’t be a return to the usual slowing pace of sales in the fall—nor will prices slide to the extent typical of the season as families settle into a new school year.

The National Association of REALTORS®’ latest housing report shows housing inventories are increasing, by 7.3% in July compared to June. A greater number of homes for sale will lessen the intensity of multiple offers, said Lawrence Yun, NAR’s chief economist, in regard to the latest home sales numbers.

Buyer demand likely will remain strong, especially as mortgage rates stay near record lows. “The fear of missing out on what could be a once-in-a-lifetime deal will likely entice additional buyers,” realtor.com® reported. The 30-year fixed-rate mortgage averaged 2.86% last week, according to Freddie Mac.

Source: “The Housing Market Continues to Cool. What Will This Fall Be Like?” realtor.com® (Aug. 25, 2021)