Pending sales climbed 7% during the four-week period ending Sept. 12, the smallest year-over-year increase since June 2020, according to a new report from Redfin.
“Homebuying demand is being propped up by a number of factors, including first-time buyers deciding to buy now that rents are rising at their fastest rate since at least the start of the pandemic,” said Daryl Fairweather, Redfin’s chief economist. “And now that enhanced unemployment benefits are ending, even more people may look to relocate for a new job. This sustained demand is likely why home prices have picked back up in recent weeks. Hopefully it will translate into more new listings too.”
Just under half the homes sold went for more than their asking price, the smallest share since mid-May, as the housing market continued to follow a typical seasonal pattern of end-of-summer cooling.
Home sale prices flattened like they typically do this time of year, though they were still 14% higher than a year earlier.
Sellers’ asking prices rose 1.7% from the four-week period ending Sept. 5. Asking prices often rise through Sept., Fairweather said, but this increase was larger than the 1% the industry saw over the same period in 2019, suggesting that home sellers may be feeling optimistic.
Asking prices of newly listed homes were up 11% from the same time a year ago to a median of $357,225, on par with where asking prices were in mid-May.
This was up 1.7% from the four-week period ending Sept. 5. During the same period in 2019, asking prices rose 1.0%.
New listings of homes for sale were down 6% from a year earlier. New listings have been below 2020 levels since the four-week period ending August 29.
The number of homes being listed is in a typical seasonal decline, down 18% from the 2021 peak reached during the four-week period ending June 27.