Pending home sales are declining, with some house hunters waiting for mortgage rates to drop lower and some feeling jittery about the economy

New listings of U.S. homes for sale rose 2.3% year over year during the four weeks ending October 5, the biggest increase in over three months, according to a new report from Redfin, the real estate brokerage powered by Rocket. Some sellers listed their homes in September as the weekly average mortgage rate dipped to 6.26%, a 10-month low, in hopes that lower rates would lure buyers.

But buyers aren’t budging. Pending sales fell 1.3% from a year ago, the biggest decline in five months, and the typical home that sells is taking 48 days to go under contract, a week longer than last year and the longest September span since 2019.

Redfin agents in much of the country say house hunters are waiting for rates to drop more before making a move. Mortgage rates, which have ticked up to 6.34% from last month’s low point, are still more than double pandemic-era lows, and rising home prices are exacerbating high costs. The median sale price is up 2.1% year over year, the biggest increase in six months.

Some prospective buyers are also wary of making a big purchase while the economy is uncertain, with the government shutdown and recent weak jobs reports making some Americans insecure about their finances.

For buyers who are motivated to move and have the means to afford today’s still-high home prices, the silver lining of the slow market is that they have negotiating power.

“It’s a buyer’s market, with house hunters asking for price reductions, doing inspections, and requesting concessions,” said Jesse Landin, a Redfin Premier agent in San Antonio. “In terms of making offers, buyers are throwing spaghetti at the wall to see what sticks. Sellers who want to make it stick, will. For example, one of my sellers, who needed to move, was getting desperate after her house had been on the market for over 100 days. She sold for $15,000 under asking price and included the furniture and outdoor amenities like the barbecue and fire pit.”

Buyers looking for a deal may want to consider condos, as there are 72% more condo sellers than buyers nationwide, a bigger gap than other home types. Another option is new construction; agents say some builders are offering mortgage-rate buydowns and other incentives in parts of the country with a lot of new homes.

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-more-sellers-list-homes

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

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