September Housing Activity Stays Strong Despite Seasonal Declines, According to Zillow
September Housing Activity Defies Expectations
September housing activity remains unseasonably resilient as lower mortgage rates and stock market highs stimulate demand. Zillow highlights that new listings increased by 3 percent year-over-year this September, which contrasts with the usual seasonal cooling off. Even a modest 2 percent dip from August is atypical when compared to the historical average of 9 percent decline during this period.
Market Insights from Zillow
- Kara Ng, senior economist at Zillow, stated that this time of year can be a sweet spot for buyers.
- Total inventory has increased by 14 percent year-over-year, despite only a marginal change of -1 percent from August to September.
- Although inventory is up, it remains 18 percent lower than pre-COVID-19 levels.
Regional Variations in Buyer Power
Market dynamics differ significantly among major cities:
- Miami, New Orleans, Austin, Jacksonville, and Indianapolis present the greatest advantages for buyers.
- Sellers maintain negotiating power in regions like New York, San Francisco, and San Jose, primarily due to strict land use regulations.
Mosrate Trends and Effects
Zillow's report emphasizes the sensitivity of both buyers and sellers to mortgage rate fluctuations. The average 30-year fixed mortgage rate dropped to 6.26 percent in mid-September from 6.58 percent previously. If the Federal Reserve continues lowering rates, it could further impact mortgage rates.
Conclusion: A Mixed Outlook
The typical monthly mortgage payment was $1,812 in September, based on a $364,891 home value, showcasing ongoing challenges in affordability as 26.2 percent of listings include price cuts.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.