Redfin Reports New Listings, Pending Sales Ticked Up in September

(Illustration courtesy of Redfin)

New listings climbed 1.4% month-over-month in September–the largest increase since February 2022–according to Redfin, Seattle.

“That’s a glimmer of relief for homebuyers, who for months have been waiting for more homes to hit the market,” Redfin’s Housing Market Tracker said.

Redfin Chief Economist Daryl Fairweather noted many Americans are “sitting on piles of money” in their homes, and some are opting to cash out even if it means giving up their low mortgage rate. “They’re worried there’s a possibility home prices will fall if rates remain elevated,” she said. “We expect rates to remain high for the foreseeable future. But we also expect prices to stay high into next year. Housing supply is so strained that even a small uptick in listings lures buyers off the sidelines, bolstering sales.”

Still, new listings dropped 8.9% on a year-over-year basis in September and remained far below pre-pandemic levels. “That’s because mortgage rates hit the highest level in more than two decades, with the average weekly 30-year-fixed rate clocking in at 7.2%,” the report said. It has since moved even higher, last week hitting a weekly average of 7.63%.

Redfin reported the overall supply of homes for sale (active listings) rose 1.9% month-over-month in September on a seasonally adjusted basis, the largest gain since last summer. But active listings fell 16.9% from a year earlier and remained near the lowest level on record as homeowners continued to feel locked in to their low mortgage rates.