Falling rates don’t always mean falling prices. I’ll go over how the rate cut affects prices, inventory, and buyer demand this fall.

Most people hear the term “rate cut” and immediately think that home prices will fall. But as a full-time Realtor, I’ve seen how market reactions often tell a different story. The Federal Reserve’s latest decision to cut rates by 25 basis points is big news, but it doesn’t automatically mean cheaper homes in Kalamazoo.

Here’s what’s really happening behind the headlines. While a lower federal rate can influence borrowing costs, home prices are influenced by numerous local factors, including supply, demand, and buyer sentiment. To understand how this plays out here in West Michigan, let’s look at what’s actually shifting in the market.

Why lower rates don’t always lower prices. Mortgage rates have dipped, with the 30-year average now around 6.13%, down from over 7% earlier this year. That’s good news for affordability, but rates and prices don’t always move together. Inflation, investor confidence, and demand can push rates back up. For buyers, it’s essential to remain realistic and plan for potential fluctuations.

Inventory is improving, but still tight. We’re seeing 30% more homes for sale compared to last year in some areas, and that’s giving buyers more choices. Builders are offering incentives, and sellers are starting to adjust expectations. However, overall, inventory remains lower than before the pandemic, which keeps prices relatively firm across Kalamazoo and Portage.

“The ‘lock-in effect’ is easing, but not enough to flood the market with listings.”

For sellers, pricing is everything. If you’re selling this fall, local conditions matter more than ever. Some neighborhoods are cooling slightly, while others remain strong. In Kalamazoo and Portage, demand is steady, but buyers are becoming more selective. Setting the right price from the start is crucial to attract serious offers and avoid lingering on the market.

For buyers, fear of a crash is misplaced. Many buyers worry about buying right before a downturn, but today’s market is nothing like the one in 2008. Homeowners have strong equity, lending standards are higher, and defaults are low. The “lock-in effect” is easing, but not enough to flood the market with listings. If a home fits your needs and budget, waiting for another rate cut might not be the best strategy.

Whether you’re buying or selling, this fall market rewards those who plan carefully and act strategically. If you want help building a smart game plan for your next move, call or text me at 269-350-5514 or email sold@veenstrateam.com. I’d be happy to walk you through the latest numbers and explain what they mean for your situation. In today’s fast-changing market, success doesn’t come from timing the rates; it comes from making informed moves with the right local strategy.