Home Listings Are Rising, but Cautious Buyers Aren’t Budging
New listings are popping up at a much faster rate than their seasonal norm, but fresh inventory isn't tempting to wary buyers in a high-cost market
Oct. 16, 2023
Image: Shawn Hempel / stock.adobe.com
New home listings have seen a modest increase this autumn, and while that uptick in inventory could provide some relief for prospective buyers, many are instead stepping back due to persistently high mortgage rates. New listings have risen 2% since the start of September, and already, the usual fall decline is less pronounced.
The total number of homes for sale dropped 14% from a year earlier during the four weeks ending Oct. 8, but according to Redfin, that’s the smallest drop since July.
“Despite last week’s hotter-than-expected jobs report, rates have fallen after the Fed signaled this week that it is unlikely to hike interest rates again and war broke out in Israel,” said Redfin Economic Research Lead Chen Zhao. “Buyers should also remember that the average mortgage rate in the news is just that: an average. Many buyers can secure a lower rate by shopping around; the difference between rates among lenders is bigger when rates are higher. Buying down a mortgage rate is always an option, too.”
