According to Dana Anderson, a Data Journalist for Redfin, monthly payments are at all-time highs giving affordability a big hit as we move from the busy summer season to a typically tamer real estate market in the fall.
So, what does that leave homebuyers to do?
Redfin found that buyers are still biding their time by waiting for either rates or home prices to come down before they hit the market. While according to Freddie Mac rates are near two-decade highs, buyers were given a reprieve last week as the Federal Reserve held off raising the nominal interest rate again. However, the Fed signaled that more increases are to come and likely will remain higher than anticipated in 2024, and continuing into 2025, which will keep prices elevated for longer.
Buyers who are waiting for housing costs to come down may consider jumping into the market if they can afford to, because a meaningful decline probably isn’t coming soon.
Soaring costs have pushed pending home sales down 13% from a year ago. The total number of homes for sale is down 16%, as many homeowners stay put to keep relatively low mortgage rates.
Home sellers are finding more reasons to sell if they have the chance in today’s market. According to Redfin, new listings have stabilized, ticking up slightly since the beginning of September. They’re down 7% from a year earlier, but that’s the smallest decline since July 2022 (though it’s worth noting that new listings were falling rapidly at this time last year). It’s possible that some homeowners are taking advantage of rising home prices and low inventory, counting on being one of the only homes for sale in their neighborhood.
Among other data found by Redfin, highlights include:
Median sale price: $374,975
Median asking price: $386,589
Median monthly mortgage payment: $2,661 at a 7.19% mortgage rate
Pending sales: 78,750
New listings: 81,732
Active listings: 806,701
Months of supply: 3.1 months
Median days on market: 30