U.S. pending home sales fell 3.5% week over week to their lowest level in almost three years, according to a new report from Redfin, the real estate brokerage powered by Rocket.

Here's what else is happening in the U.S. housing market for the four weeks ending Sept. 13:

• Declining homebuying demand gives buyers breathing room. It means less competition and more room to negotiate for the house hunters who are still shopping.
• There are plenty of homes to choose from. New listings fell slightly (-0.5%) from a week earlier, but they're still up 1.5% year over year, and there are hundreds of thousands more home sellers than buyers in the market. More homes on the market equals less pressure on buyers to rush into a decision or pay more than they want. "House hunters who can afford it should be taking advantage of today's slow market. If and when mortgage rates trickle down below 6%, I'm willing to bet inventory will be depleted in no time—then it's boom! Back to bidding wars," says Meme Loggins, a Redfin Premier agent in Portland, OR.
• Home-sale prices are holding steady. The median home-sale price rose 2% year over year, similar to the increases we've seen over the last several months. That stability means prices aren't soaring, and that sellers aren't in immediate danger of home values dropping.
• Sellers are coming to terms with market realities. Elevated mortgage rates are making housing costs high and pricing some would-be buyers out of the market—and it appears sellers are adjusting their expectations accordingly. The typical home that sold spent 46 days on the market, unchanged from a year ago, and 29.5% of homes went off market within two weeks, essentially flat.
• Bidding wars are still on the table. A quarter of homes that sold (25.1%) fetched more than their asking price. That's welcome news for sellers who price realistically from the start.

For Redfin economists' takes on the housing market, please visit Redfin's "From Our Economists" page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-pending-sales-lowest-level-since-2023