More sellers are putting their homes on the market as mortgage rates fall significantly for the first time in two years, according to Realtor.com®’s September Housing Report. 

Sellers have been hesitant to list their homes for fear of losing their locked-in low mortgage rates, but the recent decrease that has brought rates to a 24-month low is prompting sellers, especially those who have been holding off, to make a move. 

Realtor.com® found newly listed homes increased by 11.6% compared to last year, which the report described as a “significant reversal” from the 0.9% decline in August. Additionally, actively listed homes were up 34%.  

Boston had one of the highest increases in new listings last month, up 24.4% with a median listing price of $839,900.

Daniell Hale, Realtor.com®’s chief economist said sellers, especially those who are locked into a low rate, have been waiting for market conditions to change. 

“Now that we’re seeing mortgage rates down to their lowest levels in two years, there are signs of movement, with more sellers putting homes on the market even in what’s typically a real estate shoulder season,” she said. 

“We expect mortgage rates to hold around 6% through the end of the year, which is a significant difference from their 7.8% high in October 2023. This has increased the buying power of many home shoppers and is a bonus over and above the seasonal factors that make this time of year the Best Time to Buy.”

More time to buy

Not only do homebuyers have more listings to contend with, they can take their time, something they haven’t been able to do in a while. The report found last month to be the slowest September since 2019. 

Homes on average were staying on the market for 55 days, seven days more than they were last year and two days more than in August. 

And in some areas, homes are taking even longer to sell.

In some areas, homes are selling even more quickly than the average. 

In Boston, properties are selling in an average of 31 days.

Increasing home values

That increase in listings is also coming with an increase in home values. The report found home prices saw sizable growth compared to those listed pre-pandemic. 

While the median listing price per square foot increased by 2.3% year-over-year, it has risen by 50.9% compared to September 2019.

In many of the top 50 metros included in the report the price per square foot grew anywhere from 22.7% to 71.9%. 

In Boston, the price per square foot rose 0.7% from last year and 42.5% from 2019. The median list price of a home in Beantown was $839,900 in September. 

“Generally speaking, relief is brewing,” said Ralph McLaughlin, Realtor.com® senior economist. “On the one hand, buyers are seeing not only an increase in home listings but they’re also seeing homes spend more time on the market, which means more options and less frenzy to buy. 

“For sellers, there’s been positive movement in home value as indications show an increase in price growth since before the pandemic. And, all around, the decline in mortgage rates is lowering the barrier to entry and encouraging people to get into the market once again.”