Buyers, good news: the US real estate market might finally reach a "sweet spot" this autumn

Since mortgage rates have gone up over the last year, home prices in the US have gone up. However, Zillow says now is an excellent time to buy if you can afford it.

Zillow's opinion is based on its research that more buyers are lowering their asking prices, as senior economist Jeff Tucker wrote in a Thursday report.

It was the most price cut since November, with 9.2% of homes listed for sale seeing their prices drop in the week ending September 16.

It's not just the cost. People who want to buy a home also have a lot more options.

Tucker wrote in the report, "This fall is looking more and more like a sweet spot for determined buyers with enough budget room to accommodate the recent jump in mortgage rates. There are more motivated sellers and active listings than ever since December, making it easier for buyers to find the right fit."

As a result of low inventory and high mortgage rates, house prices have gone up, making homes less available; this has caused US home sales to slow down. The most current data from Freddie Mac shows that the average rate on a 30-year fixed mortgage hit a 23-year high of 7.31%.

"The high number of price cuts this autumn either means buyers have pulled back or sellers have set their prices too high, or it could be a mix of the two," Tucker said.

There were also more new ads in August than in July, which Tucker called "unusual," and the prices of listings went down simultaneously.

Since July of last year, the number of listings has been going down. He said the rise in August could mean that the worst of the "listings drought" is over.

Looking at it together, the high number of home listings in August and the lower buyer desire mean more homes are becoming available to potential buyers.

He also said buyers "have plenty of reason to be baulking right now" because mortgage payments have increased.

Zillow says that because home prices have increased, the average monthly mortgage payment has hit $1,896, 18% more than a year ago. The total amount paid each month for a mortgage, including both the capital and the interest, has increased by a massive 122% in the last three years.

As of Tuesday, Zillow said the US home market is now worth almost $52 trillion, up about 50% from January 2020, before the pandemic.