Collins: The fall housing market looks to rebound

Earlier this month, the Federal Reserve lowered its benchmark interest rate by 25 basis points and signaled it is prepared to make additional cuts this year.

Lenders are always trying to anticipate the Fed’s action and have been preparing for this latest round of cuts for the past few weeks. However, the forward guidance and clarity of future cuts have helped drive mortgage rates even lower, down to nearly 6%. These lower interest rates have had a positive impact on the local housing market, creating new opportunities for both buyers and sellers.

“The market has picked up for my buyers,” Terese Ferrara of Keller Williams Bay Area Estates said. “Many are actively engaging again, requesting disclosures and asking for detailed information about homes they are considering. The Federal Reserve’s recent rate cut has lowered borrowing costs on mortgages, auto loans, personal loans and even credit card rates. This has increased affordability and confidence, bringing more buyers back into the market.”

This renewed sense of financial optimism is bringing many would-be buyers back into the market. Buyers who have been sitting on the sidelines are re-engaging with their home search.

Michelle Perry of Christie’s International Soreno has been working with one client for more than four years. They need to sell their home in San Jose so they can purchase a larger home in Hollister for their growing family.

“This is a ‘transitional’ moment in the market where they should be able to get a strong offer for their San Jose property and still have the resources to purchase a home with that much-needed extra space in Hollister,” Perry said.

As for what to expect from the fall market, Ferrara anticipates a robust market through the end of the year. Demand will rise, and so will home prices, as inventory is absorbed.

Doug Goss, 2025 president of the Santa Clara County Association of Realtors, recommends buyers collaborate with a skilled realtor who knows the market and is well-connected to the local inventory. As far as sellers go, Goss advises them to price their properties realistically.

“Overpricing will lead to homes sitting on the market longer than expected,” he said.

In short, the Fed’s latest rate cut has brought a breath of fresh air to the housing market. With borrowing costs down, buyer enthusiasm up and agents reporting renewed momentum, the remainder of the year looks promising.

San José Spotlight columnist Neil Collins is CEO of the Santa Clara County Association of Realtors, a trade association representing more than 6,000 real estate professionals in Santa Clara County and surrounding areas. Contact Neil at [email protected].