New listings went up slightly in September. Actual home purchases were down. And the number of canceled deals hit the highest rate in almost a year.
According to Redfin, some homeowners, worried about potential home price declines, have chosen to sell their homes. The increase in listings also prompted some potential buyers to actively search for a home.
That said, the number of actual home purchases decreased significantly, marking the highest decline in nearly a year. This is likely due to buyers’ hesitations caused by the high rates.
Though demand was sluggish, prices rose by 2% over last year. This was probably a result of limited inventory and increased competition.
Pending home sales did better, increasing 1.3% from last month and reaching the highest level in almost a year (on a seasonally adjusted basis).
Closed sales were another story: they dropped to the lowest level since the start of the pandemic. Closed sales fell 1.5% from the previous month and 12.8% from the previous year (on a seasonally adjusted basis).
Redfin says the uptick in pending sales and drop in closed sales could be due to a high number of buyers withdrawing from contracts because of high rates.
In September, about 53,000 U.S. home-purchase agreements were canceled. That accounts for 16.3% of homes that entered into a contract at that time. Last month, that rate was 15.2%. A year ago, it was 15.8%.
Metro-level highlights include:
Pending sales: In Honolulu, pending sales fell 34.5% year over year, more than any other metro Redfin analyzed. Next came Birmingham, AL (-34.1%) and Colorado Springs, CO (-33.9%). Only three metros saw increases: North Port, FL (5.4%), Detroit (3.3%) and Tampa, FL (2.3%).
Closed sales: In Tacoma, WA, closed home sales dropped 40.2% year over year, more than any other metro Redfin analyzed. Next came Oxnard, CA (-28.6%) and Fresno, CA (-28.5%). Closed sales rose most in North Port (42.8%), Cape Coral, FL (17.6%) and Tampa (15%).
Prices: Median sale prices rose most from a year earlier in Rochester, NY (14.6%), Anaheim, CA (13%) and Buffalo, NY (10.9%). They fell in 17 metros, with the steepest declines in Austin, TX (-5.2%), North Port (-3.7%) and San Francisco (-2.5%).
Listings: New listings fell most from a year earlier in Tacoma (-31.5%), Atlanta (-30.8%) and Houston (-29.9%). They rose most in North Port (33.6%), Cape Coral (30.6%) and Tampa (17.8%).
Supply: Active listings fell most from a year earlier in Las Vegas (-41.7%), Stockton, CA (-38.2%) and Tacoma (-35.2%). They climbed most in Cape Coral (27.1%), New Orleans (26.5%) and North Port (26.4%).
Competition: In Rochester, 72.8% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came San Jose, CA (68.6%) and Worcester, MA (66.6%). The shares were lowest in North Port (8.9%), Cape Coral (10.3%) and Austin (12.2%).
Speed: In Rochester, 71.8% of homes that went under contract did so within two weeks—the highest share among the metros Redfin analyzed. Next came Grand Rapids, MI (64.3%) and Buffalo (62.6%). The lowest shares were in Honolulu (5%), Lake County, IL (11.8%) and Chicago (11.8%).
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