US housing market sees decline in new listings and contract activity
A report from Realtor.com shows a 10.5% drop in homes under contract in October, driven by sustained high mortgage rates affecting both buyer demand and seller motivation.
Realtor.com’s October housing data indicates a cooling trend in the US real estate market, marked by a 10.5% decrease in homes under contract compared to the previous year—the sharpest decline since 2023. New property listings also saw a contraction, falling 7.5% year-over-year and 16% compared to pre-pandemic levels in 2019.
Mortgage rates, averaging approximately 7.33% during the month, remain the primary factor influencing market activity. According to Realtor.com chief economist Danielle Hale, while buyers are reducing activity due to diminished purchasing power, sellers are largely avoiding mass market exits or significant price cuts, choosing instead to pause new listings.
Market data shows that 20% of active listings underwent price reductions in October, significantly higher than the 3% recorded in 2019. Consequently, the national median list price fell by 2.2% to $415,000, representing the 12th consecutive monthly decline. Experts suggest that current high interest rates have created a state of gridlock, as homeowners who secured lower rates between 2020 and 2022 are hesitant to list their properties.