Lower mortgage rates extend housing momentum into fall (September market report)
Key takeaways:
- The number of buyers markets more than doubled, rising from six to 15 over the past year.
- New listings from sellers rose 3% annually, emerging from a 3% annual decline in August.
- Buyers have 14% more options to choose from compared to a year ago.
A September dip in mortgage rates paired with a stock market bump gave a boost to what is traditionally the start of the slow season in real estate. Activity from sellers and buyers is unseasonably resilient after a lackluster August.
Unexpected showing of sellers in September
More homeowners decided to list their properties in September after a particularly slow August. New listings, which were down 3% year over year in August, rebounded to show 3% annual growth in September. Typically, new listings drop off sharply heading into fall — they’ve fallen an average of 9% in September over the past seven years — making this year’s mere 2% drop exceptional.
Pending sales similarly fell off by less than norms for this time of year, declining 5.4% from August to September. This is less than half the usual monthly September decline in the number of active for-sale listings. Total inventory fell 1% from August to September, and is up 14% compared to last year.
Buyer’s markets more than double as competition eases
A year ago, six of the nation’s 50 largest metros were buyers markets; this September, buyers have the edge in 15 metros. Zillow’s market heat index shows the strongest buyer’s markets are Miami, New Orleans, Austin, Jacksonville and Indianapolis. That’s due, in large part, to a surge of new construction in many of those areas in recent years.
The hottest markets for sellers are in the Northeast and Bay Area: Buffalo, Hartford, San Jose, San Francisco and New York — places where builders face some of the most stringent land use restrictions.
September 2025 Market Report
Home values
- The typical U.S. home value is $364,891.
- The typical monthly mortgage payment, assuming 20% down, is $1,812.
- Home values climbed month over month in two of the 50 largest metro areas in September. Gains were biggest in New York (0.2%), Salt Lake City (0.1%), Buffalo (0%), Milwaukee (-0.1%), and Chicago (-0.1%).
- Home values fell, on a monthly basis, in 47 major metro areas. The largest monthly drops were in Austin (-1%), Pittsburgh (-0.8%), Dallas (-0.6%), San Francisco (-0.6%), and Denver (-0.6%).
- Home values are up from year-ago levels in 26 of the 50 largest metro areas. Annual price gains are highest in Cleveland (4.6%), Hartford (4.1%), Buffalo (3.6%), Milwaukee (3.5%), and Chicago (3.4%).
- Home values are down from year-ago levels in 24 major metro areas. The largest drops were in Tampa (-6.4%), Austin (-6%), Miami (-5%), Orlando (-4.7%), and Dallas (-4.1%).
- The typical mortgage payment is up 1.9% from last year and has increased by 101.2% since pre-pandemic.
Inventory and new listings
- New listings decreased by 2% month over month in September.
- New listings increased by 3.3% this month compared to last year.
- New listings are -12.3% lower than pre-pandemic levels.
- Total inventory (the number of listings active at any time during the month) in September decreased by 1% from last month.
- The median age of inventory, the typical time since the initial list date for active for-sale listings, was 68 days.
- There were 14% more listings active in September compared to last year.
- Inventory levels are -18.2% lower than pre-pandemic levels for the month.
Price cuts and share sold above list
- 26.2% of listings in September had a price cut. That’s compared to 25.8% of listings in August and 24.9% in September last year.
- 26.9% of homes sold above their list price in August. That’s compared to 28.8% in July and 30.4% in August of 2024.
Newly pending sales
- Newly pending listings decreased by 5.4% in September from the prior month.
- Newly pending listings increased by 6.4% from last year.
- Median days to pending, the typical time since initial list date for homes that went under contract in a month, is at 27 days in September, holding steady from August.
- Median days to pending increased by six days from last year.
Market heat index
- Zillow’s market heat index shows the nation is currently a neutral market.
- The strongest sellers markets in the country are Buffalo, Hartford, San Jose, San Francisco, and New York.
- The strongest buyers markets in the country are Miami, New Orleans, Austin, Jacksonville, and Indianapolis.
Rents
- Asking rents decreased by 0.1% month over month in September. The pre-pandemic average for this time of year is 0.2%.
- Rents are now up 2.3% from last year.
- Rents fell, on a monthly basis, in 26 major metro areas. The largest monthly drops are in Austin (-0.8%), Denver (-0.7%), Las Vegas (-0.5%), San Antonio (-0.5%), and Boston (-0.5%).
- Rents are up from year-ago levels in 46 of the 50 largest metro areas. Annual rent increases are highest in Chicago (6%), San Francisco (5.6%), New York (5.2%), Cleveland (4.9%), and Providence (4.6%).