1 hour ago
1
The US housing market is showing signs of strain beneath a surface that looks, at first glance, merely quiet.
Mortgage rates have eased from last year’s highs, yet buyers are still holding back, and homes are lingering longer on the market than they have in years, new Redfin data shows.
Pending sales in late October inched up less than 1% from the previous month, the smallest gain since early summer, suggesting that lower borrowing costs alone are no longer enough to draw hesitant shoppers back in.
The slowdown is visible in the time it takes to close a sale.
The typical home spent 48 days on the market in October, the longest stretch for that month since 2019.
Rather than rush to lock in a mortgage, buyers are trading speed for scrutiny, often extending searches and expecting more for their money.
“Most house hunters aren’t flat-out stopping their search; instead, they’re being picky and looking for the perfect home,” Redfin agent Rebecca Love said.
Affordability remains the point of friction.
The average monthly mortgage payment has slipped to roughly $2,508, a 2% decline tied to modest rate relief.
But home prices have not followed suit: the median sale price climbed 2% year-over-year to about $392,375, the largest increase in six months, while median asking prices rose nearly 3% to roughly $395,500.
Sellers, in other words, are not signaling weakness. Bidding behavior, however, tells a more balanced story.
About 23% of homes sold above asking price in recent weeks, down from roughly 26% a year ago, and the sale-to-list price ratio dipped to 98.3%, giving buyers slightly more leverage than they’ve had in recent years.
The caution may have as much to do with the broader economy as with the housing market itself.
Joblessness has ticked higher, inflation remains stubborn, consumer sentiment has weakened and household savings are thin.
Many would-be buyers appear willing to wait — whether for clarity, stability, or simply the right house at the right price.
English (US)