Homebuyers are scoring the biggest autumn discounts since 2019
The U.S. housing market showed signs of sluggishness this autumn, as the typical home sold for 1.4% below its final list price, the largest September discount in six years and spent 50 days on the market, the slowest pace since 2016. Buyers have gained negotiating power amid rising inventory and economic uncertainty, while sellers are increasingly adjusting expectations or pulling listings. Metrics reflecting competition, such as the share of homes selling above list price, sale-to-list-price ratios and the speed of sales, all fell to six-year lows, signaling a buyer-favored market. Despite this, median home prices rose 1.7% year over year to $435,545, marking the biggest increase in six months, as active listings began to slightly decline after peaking earlier in the year.
While existing-home sales reached the highest level in eight months, pending sales, a more current measure of demand, fell from both the prior month and a year earlier, showing that buyer activity remains cautious. Lower mortgage rates, averaging 6.35% in September, may have supported recent sales, but the gap between buyers and sellers remains wide, with 36.7% more sellers than active buyers. Many prospective buyers still struggle to reconcile their expectations with higher costs, including elevated rates, insurance and property taxes, giving them leverage in negotiations. Overall, the market is balancing rising prices with slower sales and greater buyer discretion, reflecting a period of adjustment after years of high competition.
