The median US home-sale price increased 2.2% year over year to $392,225 during the four weeks ending September 14, the biggest increase in five months, according to a new report by real estate giant Redfin. The uptick comes as mortgage rates dropped to their lowest point in nearly a year, yet many buyers are still sitting on the sidelines, weighing whether to act now or wait for further rate declines.
Redfin’s data, which covers over 400 metro areas, showed that the median asking price also rose 2.9% to $402,475, the largest jump in four months. Despite these gains, pending home sales edged up just 0.8% from a year earlier, reflecting persistent caution among buyers. New listings increased by a modest 1.1%, while the total number of active listings rose 9.9%, the smallest increase since March 2024.
“Many homes are sitting on the market longer than usual, and many sellers are open to concessions,” said Tamara Mattox-Kabat, a Redfin senior premier agent in Denver. “A lot of buyers are waiting for interest rates to drop further before making offers. The problem with that strategy is that if rates do fall again, more buyers will come off the sidelines, prices will rise, and sellers will regain their leverage. That means even with lower mortgage rates, buyers could end up with a higher monthly payment.”