The U.S. housing market just flashed a major warning sign. Here’s what the latest numbers reveal
The number of new real estate listings is down, but that isn’t cause for alarm—not yet, anyway. In a new housing report for the month of October, Realtor.com found that sellers aren’t eager to list homes right now, but they’re not bailing out of the market altogether either. That said, the number of homes under contract in October dropped by 10.5% compared to one year prior, the biggest decline…
The U.S. housing market has signaled a significant warning, as new real estate listings have decreased, according to a recent report by Realtor.com. However, the market's cooling is not uniform, with both buyers and sellers exhibiting caution. In October, the number of homes under contract fell by 10.5% compared to the previous year, marking the largest decline since late 2023.
Realtor.com's chief economist, Danielle Hale, explained that buyers are being deterred by higher mortgage rates, which reduce their purchasing power, while sellers are listing fewer homes without a significant increase in delistings or price cuts. The number of new listings in October declined by 7.5% compared to October 2025 and 16% compared to October 2019.
Additionally, 4.4% of active listings were removed from the market in October, a figure slightly better than October 2024. High interest rates, currently sitting at an average of 7.33% for 30-year mortgages, are largely responsible for the market chill. One in five listings saw price reductions last month, compared to 3% in 2019, indicating that interest rates continue to play a crucial role in shaping market dynamics.
The national median list price for homes dropped 2.2% to $415,000 in October, marking the 12th consecutive decline. Despite rates easing slightly to 7.24% by October 29, they remain 107 basis points higher than a year ago and 53 basis points above early September. This situation places buyers and sellers in a challenging position, with many homeowners reluctant to sell due to their existing favorable interest rates.
The market's current state suggests that selling now is largely out of necessity rather than choice. Realtor.com's senior economist, Jake Krimmel, noted that while there is a pause in new supply, homeowners already on the market do not appear to be in distress. As the market approaches the holiday season, the coming months will likely provide an important test of the balance between pricing and available inventory.
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