Fall housing shifts quickly to a buyer's market

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Mortgage rates are around the lowest in three years, but buyers are suddenly much more cautious about purchasing a home. Competition is cooling, and consequently sellers can no longer command any price.

Consumer sentiment in housing did improve in August, according to a monthly survey from Fannie Mae, but only because of a big jump in the share of those who think mortgage rates will keep falling. Other components of the survey were not so rosy.

"I definitely think it has softened a bit," said Kelley McMahon a Dallas-area agent with Compass. "It's not a seller's market right now. Now is not the time for sellers to put out these crazy prices. Appraisals have gotten a lot harder, and buyers are a little more cautious. They're more willing to take their time."

"I think people are a little more cautious to pull the trigger, and I definitely think that people want to get through the election year, just kind of see what happens," she added.

 

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