September Home Sales Slip As RI Buyers Await Better Mortgage Rates: Report

Prospective home buyers in Rhode Island and most of the country are waiting for mortgage rates to drop before making offers, despite an abundant housing supply that gives them a negotiating edge, according to a new report on September home sales.

New listings for U.S. homes rose 2.3% year-over-year during the four weeks ending Oct. 5, but pending sales fell 1.3%, the biggest decline in five months, the internet-based real estate brokerage Redfin said in its report.

The Providence metropolitan area had the third-highest year-over-year median price increase in the country at 6.9%, according to the report.

See also: Wingstop Opens 1st Ever Rhode Island Restaurant

Some sellers listed their homes in September when the weekly average mortgage rate dipped to 6.26%, a 10-month low, hoping that would lure buyers, the report said.

But buyers remained skittish. The typical U.S. home sat on the market for 48 days before a contract was signed last month, a week longer than the year prior and the longest September span since 2019.

Mortgage rates, which have ticked up to 6.34% from the September low, are still more than double pandemic-era lows and are exacerbating high costs, according to the report, which showed the median sale price in September was up 2.1 percent year-over-year to $389,350, the biggest increase in six months.

See also: University of Rhode Island's Named Atlantic 10 Men's Soccer Rookie of the Week

Redfin agents also reported that some prospective buyers are nervous about making big purchases in an uncertain economy, with the federal government shutdown and weak jobs reports making some Americans insecure about their finances.

The slow market favors buyers, and that may give house hunters leverage to negotiate lower prices and other concessions.

“It’s a buyer’s market, with house hunters asking for price reductions, doing inspections, and requesting concessions,” said Jesse Landin, a Redfin Premier agent in San Antonio.

See also: Rhode Island International Airport Makes Conde Nast Top 10

"In terms of making offers, buyers are throwing spaghetti at the wall to see what sticks,” Landin said. “Sellers who want to make it stick, will.”

Buyers who want to make a deal should consider condos. The report said there are 72% more condo sellers than buyers nationwide, a bigger gap than for other home types. New construction is another option, with some home builders offering mortgage-rate buy-downs and other incentives in parts of the country.

See also: New Seafood Restaurant Opening In Providence