SANTA CLARA, CA — According to the latest Realtor.com® October Monthly Housing Report, the housing market experienced a significant upswing in pending home sales, driven by an increase in new listings and fluctuating mortgage rates. This trend was notably strong in cities like Seattle, Boston, and San Diego, where pending sales jumped by 50.5%, 25.7%, and 22.1%, respectively.
The rise in new listings last month set the stage for October’s surge in pending sales, as many sellers who listed their homes also turned buyers, injecting fresh demand into the market. Danielle Hale, Chief Economist at Realtor.com®, explained, “Existing home sales have been disappointingly low so far in 2024 as mortgage rates remained stubbornly high, but the data show that sellers–many of whom are also buyers–responded as mortgage rates volleyed in the low- to mid-6% range in recent weeks.”
Despite the positive momentum, there are concerns about rising mortgage rates potentially dampening future sales. The market dynamics also reflect regional disparities, with swing states showing distinct affordability trends compared to red and blue states. Ralph McLaughlin, Senior Economist at Realtor.com®, noted, “When it comes to home prices, swing states have mirrored red states much more than blue states over the past four years.”
Inventory levels hit their highest since December 2019, with a 29.2% increase in active listings compared to October 2023. The West led the rise with a 7% increase in new listings, followed by the Midwest, Northeast, and South. However, the gap in newly listed homes compared to pre-pandemic levels remains, especially in the Northeast and Midwest.
This surge in inventory and pending sales offers a glimmer of hope for the market, potentially marking a turning point as it heads toward the year’s end. With affordability concerns and mortgage rates in flux, the housing market continues to navigate a complex landscape of challenges and opportunities.
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