U.S. Pending Home Sales Drop to Near-Record Low Amid High Mortgage Rates
Pending home sales in the U.S. have fallen to near a 12-year low, with September marking the biggest monthly decline in over three years. The drop is attributed primarily to rising mortgage rates that exceeded 7%, making homes less affordable and deterring potential buyers. Redfin's report shows all major metropolitan areas experienced declines for the first time in nearly two years, particularly affecting high-cost regions like Seattle, Los Angeles, San Diego, and Anaheim. The housing market slowdown is also reflected in closed home sales, which dropped 1.6% month-over-month to their lowest level since late 2023. As fewer buyers enter the market due to economic uncertainty and higher borrowing costs, competition has eased, giving remaining buyers more leverage during negotiations. Redfin's head of economic research notes that while this may lead to price stabilization or declines in the near future, sellers still need to adjust their pricing strategies and offer flexibility. Home prices are showing signs of slowing growth as well. The median home-sale price rose only 1.3% year-over-year in September—the smallest increase since February—and asking prices have also seen minimal gains. Over half of homes sold for less than the original asking price, continuing a trend that has lasted over 18 months.
Tickers: $RDFN
Topics: housing market decline mortgage rates pending home sales real estate data
Read the full article at PR Newswire
Part of the story US Existing Home Sales Rise in September Amid High Mortgage Rates (2 articles)