Pending home sales fall to lowest level since 2014

Home purchases awaiting closing weakened in September to their lowest point since spring 2014. On a seasonally adjusted basis, newly signed contracts declined 4% from the preceding month, the largest monthly retreat in more than three years. All 50 of the biggest metropolitan markets posted decreases at the same time, a pattern last recorded in September 2023. Completed sales also slipped 1.6%, reaching their lowest level since late 2023.

The West Coast experienced some of the sharpest annual pullbacks. Seattle recorded a 24.4% decline. Anaheim, California, was down 15.5%, while San Diego fell 15.8%. Los Angeles posted a 16% decrease. Redfin linked the larger impact in these expensive markets to the combination of high home values and costlier financing.

At the same time, the supply of available homes increased 1.2% from the prior month and reached its highest point since March 2020. Buyers canceled 14.5% of September agreements, the largest share in Redfin’s data apart from the first pandemic months. Among completed purchases, 60.5% changed hands below their initial asking prices. Redfin said buyers who stay in the market face less competition and may have greater bargaining power over price, repairs, closing expenses or a seller-funded rate reduction.