Pending U.S. Home Sales Surge, Marking the Biggest Increase Since 2021

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Pending home sales in the U.S. rose by 2% in September compared to the previous year, marking the most significant boost since 2021, according to a recent report from Redfin. This uptick suggests that the stagnant real estate market is showing signs of revival.

The median asking price increased by 5.7% annually, reaching $399,925, the highest rise in nearly two years. Similarly, the median sale price rose 4% to $383,225. New listings also grew by 5.7%, in line with a broader trend in 2024 as housing supply gradually rebounds following the pandemic-era buying surge. The number of active listings in the U.S. is now 18% higher compared to last September, highlighting this recovery.

Among the nation’s 50 largest metro areas, pending sales increased in 32, with Phoenix leading at a 14.1% year-over-year jump. Seattle, San Jose (CA), San Antonio (TX), and Virginia Beach followed closely behind. Notably, despite its boost in pending sales, San Antonio was one of only nine cities to see new listings decline and one of just five to record a median price drop, indicating that lower prices may be driving sales and reducing inventory in the area.

However, Florida metros experienced the steepest declines in pending sales, with four out of the top five affected, while the fifth was Atlanta. Hurricane Helene, which made landfall in late September, likely impacted these figures. Additionally, Florida’s high insurance and HOA fees continue to deter buyers as inventory accumulates.

The New York City metro area saw the largest price increases, with Newark, NJ, and Nassau County (Long Island) reporting 11% jumps year over year. Midwest cities like Milwaukee, Chicago, and Cleveland followed closely, each recording a 10% increase.

Conversely, only five of the 50 metros saw prices decrease, led by Austin, Texas, with a 4.1% drop, indicating that the market there has yet to stabilize. Other cities experiencing declines included Tampa (FL), San Antonio (TX), Oakland (CA), and Fort Worth (TX).

“Pending sales improved because buyers came out of the woodwork in late September after the Fed’s interest rate cut, even though mortgage rates had already been declining for several weeks in anticipation of the cut,” the report noted.

Despite the recent increase, mortgage rates have risen again over the past two weeks. However, experts suggest these rates are unlikely to deter homebuyers significantly.