The market update for September 2024 shows that inventory is increasing across the country. The number of homes actively for sale continues to be elevated compared with last year, growing by 34.0%, an 11th straight month of growth, and now sits at the highest level since April 2020. The total number of unsold homes, including homes that are under contract, increased by 22.9% compared with last year.
Listings Market Update for September 2024
Home sellers increased their listing activity in September, with 11.6% more homes newly listed on the market compared with last year, reaching a three-year high on the heels of falling mortgage rates and the Fed’s 50 basis points rate cut. Newly listed homes in the DC metro area increased by 26.2% so if you think that there are a lot more homes to choose from, you are right! The increase in inventory is definitely welcome since listings have been scarce for the last few years, driving prices up.
- There were 34% more homes actively for sale on a typical day in September compared with the same time in 2023, marking the 11th consecutive month of annual inventory growth and the highest count since April 2020. However, this is a deceleration from August, which was up 35.8% year over year. This is the third consecutive month where the rate of growth has decreased from the prior month, and this trend could continue as we are lapping an unseasonably late crest in inventory in 2023.
- While inventory this September certainly continues to improve, it is still down 23.2% compared with typical 2017 to 2019 levels. This is a noticeable improvement from last month’s 26.4% gap. Altogether, inventory continues to make progress. Falling mortgage rates are alleviating the degree to which rate-lock is binding consumers, but the data suggests that this hurdle hasn’t disappeared. In fact, as of mid-2024, 85% of outstanding mortgages had a mortgage rate below 6%, and 56% had a rate below 4%.
This significant increase in inventory is beginning to have a predictable and welcome effect on prices.
- The share of listings with price cuts increased by 0.9 percentage points compared with last year to 18.6%.
According to the Realtor.com® September housing data, the number of new listings jumped on a year-over-year basis to the highest level in a September since 2021 as falling mortgage rates helped chisel away at the inventory “lock-in” effect that has plagued the market for the past few years.
In September, all four regions continued to see active inventory grow over the previous year. The South saw listings grow by 42.0%, while inventory grew by 36.5% in the West, 22.3% in the Midwest, and 14.8% in the Northeast. Compared with the typical September from 2017 to 2019 before the COVID-19 pandemic, the South saw the smallest gap in inventory, down 8.4% compared with pre-pandemic levels, while the gap was 12.1% in the West, and much larger in the Midwest and Northeast, at 42.1% and 50.9%, respectively.
The inventory of homes for sale increased in all of the 50 largest metros compared with last year. Metros that saw the most inventory growth included San Diego (+77.2%), Tampa (+74.0%), and Orlando (+68.6%).
Despite higher inventory growth compared with last year, most metros still had a lower level of inventory when compared with pre-pandemic years. Among the 50 largest metro areas, 13 saw higher levels of inventory in September compared with typical 2017 to 2019 levels. This is up from 11 metros last month. The top metros that saw inventory surpass pre-pandemic levels were predominantly in the South and included Austin (+40.3%), Memphis (+35.1%), and Orlando (+25.8%).
The Northeast saw newly listed homes increase the most compared with last year
All regions saw a significant bump in new listings compared with September 2023, with newly listed home inventory increasing by 15.6% in the Northeast, 13.4% in the West, 8.3% in the South, and 6.1% in the Midwest. The gap in newly listed homes compared with pre-pandemic 2017 to 2019 levels was also the lowest in the South, where newly listed homes were just 5.5% below pre-pandemic levels. In comparison, they were down 12.9% in the Northeast, 18.0% in the West, and 18.2% in the Midwest.
In September, 43 of the 50 largest metros saw new listings increase over the previous year, a strong increase from 33 last month. However, only five large metros saw more newly listed homes this September compared with the typical pace of new listings from September 2017 to 2019; this is compared with zero large metros in prior months. The metros that saw the largest growth in newly listed homes compared with last year included Seattle (+41.8%), San Jose (+27.1%), and Washington, DC (+26.2%).
Number of Homes Under Contract Has Increased
In September, the number of homes under contract but not yet sold (pending listings) rebounded, increasing by 3.5% compared with last year. This increase was a significant improvement over the previous month’s 0.3% gain. The gain in pending listings is likely due in part to a drop in mortgage rates. In September, mortgage rates fell to their lowest point in 24 months. This drop was in response to the Federal Reserve’s decision to cut the jumbo rate by 50 basis points. The lower rates are making it possible for some buyers to return to the market, as their buying power and home choices increase.
Time on Market in September 2024
The market update for September 2024 shows that the typical home spent 55 days on the market this September, which is seven more days than the same time last year and two more days than last month. This marks the slowest September since 2019, marking the sixth month in a row where homes spent more time on the market compared with the previous year. However, the time a typical home spends on the market is still seven days less than the average September from 2017 to 2019.
Regional and metro area time on the market trends
In the South, where the growth in home inventory has been the largest, the typical home spent 11 more days on the market in September compared with last year. Out West, homes are staying on the market seven days longer. However, in the Midwest, homes are staying on the market just two more days than the same time last year, while in the Northeast, homes are spending the same time on the market as last year.
While three regions were still seeing time on the market below pre-pandemic levels, in the West, homes are now spending one day more on the market compared with the typical September from 2017 to 2019. Time on the market was six days less than pre-pandemic levels in the South, 12 days less in the Midwest, and 16 days less in the Northeast.
Meanwhile, time on the market increased compared with last year in 40 of the 50 largest metro areas this September, down slightly from 42 markets last month. It increased the most in Tampa (+22 days), Rochester (+21 days), and Phoenix (+17 days). Twelve markets saw homes spend more time on the market than typical 2017 to 2019 pre-pandemic timing, with a few notable standouts: Austin (+18), Nashville (+15 days), and Phoenix (+13 days).
Does this Market Update for September 2024 Motivate You to Move?
With inventory increasing by 26% in the DC metro area, there are lots of options now to choose from which is good news for buyers. Prices have increased from last year, even if they are slowing now – which is still good news for buyers and sellers. If you are thinking of moving, let’s talk! I would love to walk you through the home buying or home selling process. Please call me at 240-401-5577 or email me at lise@lisehowe.com.

