The market's national slowdown is giving buyers even more negotiating power
Homebuyers in the United States are finding the best autumn deals in six years as the housing market continues to slow, according to Redfin. The typical home sold in September went for 1.4% below its final list price, the largest September discount since 2019.
Homes also spent an average of 50 days on the market, marking the slowest September pace in nearly a decade. While existing-home sales rose to their highest level in eight months, pending sales—a key indicator of buyer demand—declined both month over month and year over year.
The sluggish demand has led sellers to pull back, with active listings down about 1% from August. “Homebuyers have extremely high expectations,” said Roze Swartz, a Redfin real estate agent in Houston. “Sellers can’t be picky on price—if they don’t have the lowest price on the market, they’re not even going to get showings.”
Despite weaker competition, median home prices rose 1.7% year over year to $435,545 in September, the highest September level on record. Redfin noted this was the largest price increase in six months. The gain is attributed to a recent decline in new listings, which has tightened supply even as demand stays soft.
Redfin’s data shows that only 25.3% of homes sold above list price, down from 28.5% a year earlier, while the average sale-to-list-price ratio slipped to 98.6%. The share of homes going under contract within two weeks also dropped to 32.8%, the lowest for any September since 2019.
The Midwest led in price growth, with Milwaukee up 9.1%, followed by Detroit at 7.9% and Cleveland at 7.4%. Texas metros saw the steepest declines—Dallas (-2.7%), Austin (-2.3%), and Houston (-1.5%).
On the sales front, Providence, Rhode Island, and San Francisco, California, recorded double-digit gains, while Detroit and Orlando, Florida, experienced notable declines. Active listings rose most in Washington, D.C. (21.1%) and Las Vegas (20.7%), but fell in San Francisco and San Jose.
Existing-home sales increased 0.4% month over month and 4.5% from a year earlier to an annualized rate of 4.25 million, supported by declining mortgage rates, which averaged 6.35% in September—the lowest in a year, according to Redfin.
However, pending sales—representing deals still in progress—fell 1% month over month and 2.4% annually. Redfin analysts said many potential buyers remain hesitant, waiting for further rate cuts before committing to purchases.
