New Listings of Homes For Sale Increase in September

Redfin reported on Monday (10-23-23) that new listings climbed 1.4% month-over-month in September. This is the largest increase since February 2022 (seasonally adjusted), providing a spark of hope for homebuyers who for months have been waiting for more homes to hit the market.

Year-over-year, new listings were 8.9% lower in September and remain well below pre-pandemic levels. Redfin also notes that approximately 53,000 US home-purchase agreements were cancelled in September, which is equal to 16.3% of homes that went under contract during that month—the highest percentage since October 2022 when mortgage rates surpassed 7%. The cancellation rate compares with 15.2% in August and 15.8% in September 2022.

Seasonally adjusted, the overall supply of homes for sale (active listings) increased 1.9% over August. On the other hand, active listings dropped 16.9% from a year earlier and remained near the lowest level on record as homeowners continue to feel locked into their low mortgage rates.

Adding additional background and her analysis to the report, Redfin Chief Economist Daryl Fairweather said:

“A lot of 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. 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.”