October Ends Three-Year Streak of National Price Gains

October broke a three-year run of annual increases in the country’s typical residential selling price. The national midpoint reached $388,634, a 0.4% drop compared with the prior year. Two months earlier, the measure had risen 2.5%. Wages, meanwhile, were growing about 4% annually, making the modest price retreat meaningful for affordability.

Buyer activity also weakened as borrowing became more expensive. Pending transactions decreased 3.6% from September, reaching their lowest point since 2013 except for April 2020. Mortgage rates averaged 7.33%, compared with 6.86% one month earlier. Completed purchases slid 2.1% during October. Available inventory increased 0.9% and reached its largest level since early 2020, although newly listed properties dropped 1%.

Local markets varied widely. San Francisco prices advanced 16.8%, while its active inventory contracted 7%. New Brunswick gained 7.7%, and both New York City and Nassau County rose 4.4%. Austin recorded the steepest decrease at 6.5%, followed by Seattle at 5.1% and Nashville at 4.9%. Every major metro tracked by Redfin had fewer pending transactions, marking the second consecutive month with a universal decline.