Asking prices of homes listed for sale increased to an all-time high during the four-week period ending September 26. Pending sales were up just 4%, the smallest year-over-year increase since June of 2020. Other housing market measures continued to show a typical seasonal cooling, with fewer than half of homes selling above list price and new listings of homes for sale down 20% from their 2021 peak.
“Home sellers continue to show their optimism with increasing asking prices,” said Redfin Chief Economist Daryl Fairweather. “However, there are already signals from the Fed and markets that mortgage rates are starting to creep up. The hit to affordability that comes with higher rates and higher home prices could let some steam out of the market. It’s never a good idea to overprice your home, but I would be especially wary of overpricing as seasonal cooling trends persist and rising rates take some affordability out of the homebuying equation.”
Unless otherwise noted, the data in this report covers the four-week period ending September 26. Redfin’s housing market data goes back through 2012. Except where indicated otherwise, the housing market is generally experiencing seasonal cooling trends, similar to what was seen during this same period in 2019.
Refer to our metrics definition page for explanations of all the metrics used in this report.
