Homebuyers in Seattle , Silicon Valley and the nation’s other priciest markets may soon see some relief as falling mortgage rates prompt more sellers to list their properties.
The number of newly listed homes for sale climbed 4.2% last month, according to data from Realtor.com. September’s jump was the biggest annual increase since the peak of the spring homebuying season, and helped lift active listings 34% from a year earlier, according to Realtor.com.
A dearth of properties for sale is one reason keeping the median U.S. home sale price near record highs. The median U .S.home sale price hit an all-time high in June at $426,900.
Last month, the Federal Reserve announced its first interest rate cut in more than four years and signaled more cuts to come this year and through 2026.
While the Fed doesn’t set mortgage rates, its policy pivot cleared a path for mortgage rates to generally go lower.
“Sellers, especially those who are locked into a low rate, have been waiting for market conditions to change,” said Danielle Hale, chief economist at Realtor.com. “Now that we’re seeing mortgage rates down to their lowest levels in two years, there are signs of movement, with more sellers putting homes on the market, even in what’s typically a real estate shoulder season.”