US pending home sales fall to near 12 year low

United States pending home sales dropped 4 percent month over month in September on a seasonally adjusted basis, reaching their lowest level since spring 2014, excluding the initial pandemic pause in April 2020. Redfin News reported that this represents the largest monthly decline in more than three years. Pending sales fell on a year over year basis across every major market in the nation. [1]

The drop in contract signings occurred as average mortgage rates steadily increased and surpassed 7 percent by the end of the month, according to Redfin News. Higher borrowing costs continued to price out buyers. Seattle and regions across Southern California registered the largest year over year decreases in pending sales activity. [1]

Local housing markets displayed mixed results in specific regions outside national trends. Culture Alberta reported that home sales in Edmonton dropped 10 percent year over year as overall inventory grew 17 percent. Conversely, Hoodline reported that Manhattan Beach median home prices reached a record 3.55 million dollars alongside a surge in transactions. [4][5][6]

In the luxury sector, Florida Today reported that West Palm Beach recorded a 43.9 percent increase in luxury home sales. That surge represented the fastest growth rate among major metropolitan areas across the United States. [7]