The jump in mortgage rates two years ago placed the housing market in a deep freeze as homeowners with a 3% mortgage hesitated to sell and lose that low rate. But now that rates have fallen in recent weeks, for-sale signs are proliferating.
Realtor.com reports new listings jumped 11.6% in September, compared to September 2023. The number of active listings surged 34%, offering buyers more options than they’ve had in years.
"Sellers, especially those who are locked into a low rate, have been waiting for market conditions to change,” said Danielle Hale, chief economist at Realtor.com. “Now that we're seeing mortgage rates down to their lowest levels in two years, there are signs of movement, with more sellers putting homes on the market even in what's typically a real estate shoulder season."
Hale said Realtor.com expects mortgage rates to hold around 6% through the end of the year, which is a significant difference from their 7.8% high in October 2023.
‘Increased buying power’
“This has increased the buying power of many home shoppers and is a bonus over and above the seasonal factors that make this time of year the best time to buy," she said.
Here are the metros with the largest increases in property listings:
Metro | % change in New Listings count YoY | Median Listing Price |
Seattle-Tacoma-Bellevue, WA | 41.8 % | $772,425 |
San Jose-Sunnyvale-Santa Clara, CA | 27.1 % | $1,432,170 |
Washington-Arlington-Alexandria, DC-VA-MD-WV | 26.2 % | $599,948 |
Denver-Aurora-Lakewood, CO | 25.5 % | $610,250 |
Boston-Cambridge-Newton, MA-NH | 24.4 % | $839,900 |
Raleigh-Cary, NC | 24.2 % | $453,165 |
Los Angeles-Long Beach-Anaheim, CA | 22.6 % | $1,154,440 |
San Diego-Chula Vista-Carlsbad, CA | 21.5 % | $997,000 |
Providence-Warwick, RI-MA | 21.5 % | $567,500 |
Richmond, VA | 20.1 % | $442,346 |
But home prices are still going up
The rise in listings may offer buyers some relief from rising home values. Because there have been so few homes on the market in recent years, home prices have continued to rise, albeit at a slower pace.
According to September 2024 data, homes are seeing significant price increases compared to homes listed prior to the pandemic. The median listing price per square foot increased by 2.3% year-over-year, but compared to September 2019, the price per square foot has grown by 50.9%.
Among the top 50 metros, the price per square foot growth rate ranged from 22.7% to 71.9%. Leading the way is, perhaps not by surprise, the New York metro area with a 71.9% increase in price per square foot vs. September 2019.
