U.S. Housing Market Sees Rising Inventory Amid Declining Pending Sales
The U.S. housing market experienced a significant shift in October as active inventory rose 7.4% year-over-year to 183,500 homes, marking the fastest annual growth in eight months. Despite this buildup of supply, sellers have largely resisted price cuts, with only about 20% reducing their asking prices. This creates a 'frozen' market dynamic where inventory grows through existing listings rather than new ones. On the demand side, buyer activity has cooled significantly due to high mortgage rates. Newly pending home sales dropped 16.8% year-over-year in October, the largest annual decline since August 2023. While monthly mortgage payments for a typical home rose to $2,004—a 12.8% increase from last year—economists suggest that while November may see further contraction, the market could stabilize and offer opportunities for buyers if interest rates ease in the new year.
Topics: housing inventory mortgage rates pending home sales real estate market trends
Part of the story Zillow Report: US Existing Home Sales and Pending Listings Decline Amid Rising Mortgage Rates (6 articles)