Both new entries and the total housing supply declined in September, which weighed on sales.
Newly listed homes were down 2.3% from August and 9% year over year, while the total number of properties for sale declined 2% monthly and 19% annually, according to Redfin. With competition easing and COVID-19 infection rates falling from summer onwards, industry experts believe an increasing number of homeowners will advertise their homes, which could be the biggest driver of inventory over the next 12 months.
"The severe shortage of inventory is limiting home sales," Redfin 's chief economist Daryl Fairweather said in the report. “The homebuyers who are just beginning their search find that the well has dried up. But I am confident that 2022 will finally have a strong year for new builds when it becomes easier to get building materials. That's what the market needs more than anything. "
For the second month in a row, and only for the second time in the last 16, total sales declined annually. Despite a 1.6% increase from August, the number of homes sold has decreased 5.4% since September 2020. Outstanding sales were positive, increasing 2.8% annually and 2.9% monthly. Growing pessimism among shoppers during the month played a role as they led fatigue with record gains according to the latest Fannie Mae Home Purchase Sentiment Index.
However, this has not prevented house prices from rising double-digit annually for the 14th consecutive month. The average selling price tracked by Redfin rose to $ 376,800, down 0.8% from its all-time high in August, while increasing 13.9% year over year. The time spent in the market fluctuated similarly, settling at 18 days from August 16 and 29 from September 2020.
Broken down by the 85 largest metropolitan areas, Austin, Texas outperformed the nation in vehicle registrations, up 17.6% year over year. Tacoma, Washington and Portland, Oregon followed, up 9.1% and 8.3%, respectively. At the other end of the spectrum, new listings were down 59% in Baton Rouge, La., 51.3% in Salt Lake City, and 49.4% in New Orleans.
Austin also led the year in total portfolio growth with a 3.3% increase. Only two other markets, Tacoma by 2.6% and Columbus, Ohio, by 0.3% grew supply. Similarly, Baton Rouge declined the most, with a 52.6% decline, followed by 50.3% in Salt Lake City and 46.9% in Rochester, N.Y.
For people returning to the cities, New York saw the biggest jump in revenue year-over-year, at 25.9%. Honolulu was third at 23.6%, and San Jose, California was third at 14.7%. Sales in New Orleans were the biggest declines from last September, down 41.7%, nearly doubling the declines of 23.5% in Bridgeport, Connecticut and 23.3% in Salt Lake City.
A trio of hot markets saw the largest annual increases in home prices, led by 27.8% in Salt Lake City, 27.3% in Austin and 25.6% in Phoenix. Austin saw its price decline 4.8% month-over-month. Bridgeport, Connecticut, was the only subway to drop 2.2% year over year. It ended up rising 1.2% in Memphis, Tennessee and 3.9% in Kansas City, Missouri.