Sellers Don’t Budge on Price
What October’s Housing Numbers Tell Us About the Market Moving Forward
The housing market is showing signs of an increasingly difficult balancing act. More homes are sitting on the market, buyers are becoming more cautious, and sellers are still reluctant to lower their asking prices. The result is a market where inventory is building, transactions are slowing, and buyers and sellers are having a harder time reaching common ground.
According to October housing data reported by Realtor.com and Zillow, active housing inventory reached 183,500 homes, a 7.4% increase over October 2025. This represents the fastest annual inventory growth in eight months and continues a trend that has been developing since February. Interestingly, this increase is happening even as fewer homeowners are putting their properties up for sale. New listings were down 7.5% compared with October of last year. In other words, the growing inventory is not simply the result of more sellers entering the market. It also reflects homes remaining available longer because buyers are taking more time to make purchasing decisions.
Buyers Are Pulling Back, but Sellers Are Holding Their Ground
One of the most revealing numbers from October was the 16.8% year-over-year decline in newly pending home sales, according to Zillow. Pending sales represent properties that have entered into contract, making this an important indicator of current buyer activity. This was the largest annual decline since August 2023 and the slowest October for pending sales since 2018. Affordability remains a major obstacle. Although mortgage rates declined slightly during October, they remain more than a percentage point higher than they were a year ago. At the same time, home prices have continued to rise.
Zillow estimated that the monthly mortgage payment on a typical American home reached $2,004 in October, assuming a 20% down payment and excluding taxes and insurance. That represents a 12.8% increase over the previous year. For many prospective buyers, the numbers simply are not adding up.
Yet sellers have not responded with widespread price reductions. Just over 20% of sellers lowered their asking prices in October, approximately the same percentage as September and October of last year. There has also been no significant increase in homeowners removing their properties from the market.
This creates an unusual situation: buyers are becoming more selective, but sellers are not yet making the adjustments necessary to bring more of them to the closing table.
What Happens Next?
Zillow’s chief economist, Mischa Fisher, anticipates that November could bring an even greater contraction in pending sales before the pace of the slowdown begins to ease into the new year. The important distinction is that a slowdown in transactions does not necessarily mean a collapse in home values. Rather, the market appears to be working through an affordability problem and a growing disconnect between what buyers can afford and what sellers believe their properties are worth.
The continued buildup in inventory could eventually create more opportunities for buyers, particularly if mortgage rates provide some relief. Buyers who have been waiting for more choices and greater negotiating leverage may find the coming months more favorable. However, sellers who price their properties based on yesterday’s market may find themselves waiting longer for a qualified buyer.