US Pending Home Sales Reach Highest Level Since September 2022

Redfin reported that US pending home sales reached their highest level since September 2022 during the four-week period ending May 3, rising 7.7% year-over-year on a seasonally adjusted basis.

Lower housing costs, increased inventory, and delayed seasonal demand helped bring more buyers into the market, Redfin said.

The median US housing payment declined 2.2% from a year earlier as mortgage rates eased. Rates fell to 6.23% last week from a six-month high of 6.46% two weeks earlier, although rates climbed as high as 6.56% this week amid geopolitical uncertainty tied to renewed fighting in Iran.

The number of homes for sale increased roughly 1% year-over-year to near the highest level in at least five years, providing buyers with more options and supporting higher sales activity.

Spring seasonality may also be arriving later than usual. April is typically one of the strongest periods to list a home because properties are more likely to sell quickly and above asking price.

Despite the increase in pending sales, Redfin said the housing market remains slower and less competitive than in previous spring seasons. The typical home that sold went under contract in 43 days, three days longer than a year earlier. Meanwhile, 26.4% of homes that went under contract sold above asking price, the lowest share for this time of year in at least five years.