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A House Made Out Of Autumn Leaves
Money; Shutterstock

The housing market is having a bit of a Dr. Jekyll-Mr. Hyde moment.

On the one hand, buyers are finally getting some relief from the skyrocketing prices and break-neck selling speeds of the last two years. On the other, mortgage rates are soaring — reducing affordability and keeping would-be sellers on the sidelines.

The result is a market that’s better for some, worse for others and, well, not really ideal for anyone.

As Nik Shah, CEO of Home.llc, puts it, “Buyers and sellers will both endure a tough fall housing market.”

He’s not wrong — but what exactly does “tough” look like? And will things improve or get worse as time goes on? Here’s a look at what’s in store for housing this fall.

Moderating home prices

Home prices have been on a steep runup since the early months of the pandemic. The median home price in the second quarter of 2020 was just $322,000, according to the U.S. Census Bureau. By the start of this year, it had surpassed $440,000 — an almost 37% increase in less than two years.

Fortunately, price growth appears to be slowing. Home prices were up 14% between September 2021 and September 2022, down from the 18% annual increase seen back in June.

According to housing experts, annual price growth should decelerate even more as 2022 comes to a close. Price declines, though, probably aren’t in the cards — at least in the next few months.