September Signals a Shift: Pending Home Sales Stabilize After Months of Decline
Anya’s Market Bites:
In a refreshing turn of events, September marked a significant shift in the real estate landscape as pending home sales remained flat compared to last year—the first time in nine months that sales didn’t decline. This development, paired with increasing home tours and mortgage-rate locks, suggests a more hopeful market ahead. Here’s what’s driving the change:
Key Highlights:
Pending Home Sales Stabilized:
For the first time since January, pending U.S. home sales were flat year-over-year during the four weeks ending September 29. This marks a departure from the continuous decline witnessed earlier in the year.Rising Sales in Major Metros:
Sales increased year-over-year in 27 of the 50 largest U.S. metro areas. Notably, Phoenix saw a 13% increase, while San Jose and Portland experienced 12% and 10% rises, respectively.Demand Indicators Improving:
Redfin’s Homebuyer Demand Index jumped 9% month-over-month, reaching its highest point since April.
Mortgage-rate locks more than doubled by the end of September, while mortgage-purchase applications increased by 10%.
Mortgage Rates Drop:
The average 30-year mortgage rate fell to 6.08%, the lowest in two years, resulting in more affordable payments for homebuyers and pushing their typical mortgage payment down to $2,529.More Listings Hitting the Market:
Falling rates are prompting more homeowners to list their properties. However, while there is more activity at listings, homes are still not receiving multiple offers as frequently as before.Regional Variations:
Florida metros like West Palm Beach, Fort Lauderdale, and Miami are still facing large declines in sales due to climate concerns and rising insurance and HOA costs.
The combination of lower mortgage rates and rising homebuyer interest has created a more favorable environment for both buyers and sellers. While the market is not fully back to pre-pandemic levels, September indicates a steady recovery may be underway.
(Source: Redfin)
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Anya Derebenskiy
(949) 942-5183
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