Pending-Home Sales Trend Downward

With more buyers sitting on the sidelines, pending-home sales declined by 0.3% year-over-year during the four weeks ending Nov. 9, according to data from real estate marketing platform Redfin. Sales in general are down, with more Americans citing concerns about the current state of the economy. In a recent Redfin survey, 20% of Americans say they delayed major purchases during this time due to the government shut down, and another 15% said they canceled major purchases altogether.

Some homes are selling, but even these homes are sitting on the market for longer. For the four weeks ending Nov. 9, homes took a median of 49 days to go under contract, the longest time period for this time of year since 2019. At the same time, more homes are being placed on the market. This week, new home listings were up by 3.4% year-over-year.

“House hunters are sensitive to rates and prices; many are waiting for one or both to drop before buying,” said W.J. Eulberg, a Redfin Premier agent in Milwaukee. “But that’s not always a great strategy. If mortgage rates come down significantly, there will be more bidding wars. And if prices drop, it will probably be because the economy has weakened and people are losing their jobs. For people who can afford a home now, they may consider jumping into the market while competition is low and many sellers are willing to negotiate on price or offer concessions like funds to cover closing costs.”