SANTA CLARA, CA — The recent Realtor.com September Housing Report reveals a notable uptick in the housing market, with newly listed homes increasing by 11.6% year-over-year and actively listed homes rising by 34.0%. This surge comes as mortgage rates hit a two-year low following a significant Federal Reserve rate cut in September.
Danielle Hale, Chief Economist at Realtor.com, explained the shift, noting, “Sellers, especially those locked into low rates, have been waiting for market conditions to change. With mortgage rates now at their lowest in two years, more sellers are listing homes, even during what is typically a slower season.”
The report also highlights the easing of the “lock-in” effect, where homeowners with lower mortgage rates have hesitated to sell, limiting inventory. As of mid-2024, 84% of mortgages had rates below 6%, but the recent housing data indicates a shift, with the highest level of new listings for September since 2021.
The market also shows a slower pace, with homes spending an average of 55 days on the market, marking the slowest September since 2019. New Orleans leads with homes on the market for 78 days, while faster-moving areas include Milwaukee and San Jose, each averaging 31 days.
Home values continue to grow, with the median price per square foot rising 2.3% year-over-year and a 50.9% increase since September 2019. New York tops the list with a 71.9% jump in price per square foot compared to pre-pandemic levels.
Ralph McLaughlin, Senior Economist at Realtor.com, commented, “Buyers now have more options and less urgency, while sellers benefit from rising home values. The drop in mortgage rates is lowering barriers and drawing more people back into the market.”
The report emphasizes a more favorable climate for both buyers and sellers, signaling potential continued growth in the real estate sector.
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