US Housing Market Cools Despite Lower Mortgage Rates

On Wednesday, Realtor.com released its October Monthly Housing Market Trends Report, showing that US homebuyers saw more inventory for the 24th consecutive month, although growth has slowed since mid-summer. The number of homes for sale remained above 1 million for the sixth straight month.

Despite declining mortgage rates, the housing market’s pace stayed sluggish, with homes spending longer on the market for the 19th consecutive month. The slowdown was most pronounced in Florida and the West. Nationally, list prices were flat from a year earlier but slipped in the South and West, while edging higher in the Northeast and Midwest.

Highlights from the report include:

• Inventory: Active listings rose 15.3% from a year earlier, the 24th consecutive monthly gain. Growth has slowed each month since May.
• Days on market: Homes spent an average of 63 days on the market, five days longer than a year ago.
• Pending sales: Pending home sales declined 1.9% from a year earlier, reflecting weak buyer activity despite lower mortgage rates.
• Prices: The national median list price edged up 0.4% year-over-year to $424,200, while the price per square foot declined 0.5%. Prices fell in the South and West but rose modestly in the Northeast and Midwest.
• Federal metros: Listings and search activity dipped in Washington, DC, Virginia Beach, Oklahoma City, and Baltimore amid the government shutdown.