October’s housing market shows continued cooling as pending home sales posted another annual decline, reflecting ongoing affordability challenges, elevated mortgage rates, and constrained inventory across many regions.
Despite strong demand from buyers who remain active, many are hitting affordability ceilings as borrowing costs stay near multi-year highs. Limited housing supply—particularly in entry-level price segments—continues to restrict contract signings and delay market momentum.
📉 Key Highlights
1. Annual Decline in Contract Signings
Pending home sales fell compared to the same period last year, signaling hesitation among both buyers and sellers navigating high-rate environments. Many would-be sellers continue holding on to lower-rate mortgages, further reducing inventory.
2. Affordability Remains the Primary Challenge
Elevated mortgage rates have reduced purchasing power, pushing some prospective buyers to wait or adjust expectations. Even modest rate shifts can impact monthly payments significantly.
3. Inventory Shortages Continue
Low housing supply remains a major constraint. While new construction has helped, it hasn’t fully compensated for resale shortages—especially in affordable price ranges.
4. Regional Variations
Although most regions saw a slowdown, some markets remain resilient due to strong job growth, population inflows, or increased new-build activity. Local market conditions still vary widely.
🔍 What This Means for Buyers and Sellers
For Buyers:
Softer competition may open new opportunities
More room for negotiation on price or concessions
Higher rates make pre-approvals essential to understand true buying power
For Sellers:
Accurate pricing is critical in a slower market
Well-presented and move-in-ready homes still attract strong interest
Longer time on market should be expected in some areas
🧭 Looking Ahead
While high mortgage rates remain a drag on the market, many analysts anticipate greater stability in the months ahead. Any shift toward lower rates could quickly revive buyer interest and pending contract activity.
Until then, the market continues to move at a more moderate pace—still active, but more selective and sensitive to economic conditions.