Summary
September’s housing market showed promising signs for buyers with a surge in new listings. The increase, likely driven by falling mortgage rates, provided more choices and buying power. However, despite this, homes are staying on the market longer than in previous years, indicating a potential shift in the market dynamics.
Report
According to the September housing data from Realtor.com, the number of new listings jumped on a year-over-year basis to the highest September level since 2021. On a typical day in September, 34% more homes were actively for sale than at the same time in 2023. This marks the 11th consecutive month of annual inventory growth and the highest count since April 2020.
However, September’s 34% is a slight slowdown from August and the third consecutive month where the rate of growth has decreased from the prior month. The total number of unsold homes increased by 22.9% compared with last September. The national median list price showed a strong seasonal decline of nearly $5,000 in September, falling to $425,000. The median list price has declined for the third month in a row.
The typical home list price has grown by 36% compared to the home list price in September 2019. As mortgage rates fell in September to their lowest in 24 months on the heels of the Federal Reserve’s rate cut, some buyers are likely coming back as both their buying power and home choices increased in September.
Perhaps the biggest September news is that the number of newly listed homes was 11.6% above September 2023, a significant reversal from the 0.9% decrease seen in August. The decrease in mortgage rates seen in mid-August appears to be leading to an increase in listings. In September, the typical home spent 55 days on the market, 7 more days than September 2023, and 2 more days than this past August.
This marks the slowest September since 2019 and the sixth month in a row in which homes spent more time on the market than in the previous year.
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