Housing Market: Home Sales Now Drop To New Low Since 2014

Pending home sales have now dropped to a new low since 2014 as rising mortgage rates have outpriced new homebuyers.

Real estate brokerage search platform Redfin analyzed the latest home sales data, which paints a market difficult for most Americans to get a grasp on.

Pending home sales fell from a year earlier in every single major U.S. metro, led by Seattle and Southern California.

The total supply of homes for sale also rose to its highest level since March 2020.

What’s astonishing is 14.5% of homebuying deals fell through in September.

“Pending home sales declined 4% from a month earlier in September on a seasonally adjusted basis–the biggest monthly drop in more than three years,” says Redfin.

“This is a real-time indicator of what’s happening in the housing market; fewer homes went under contract in September largely because mortgage rates rose steadily, surpassing 7% by the end of the month.”

According to the latest housing market data, pending home sales took a plunge in all 50 of the most populous U.S. cities.

Zoom out and you’ll see that the last time an event like this occurred was back in September of 2023 when mortgage rates last surpassed 7%.

Where Have Home Sales Fallen The Most?

Home sales are having the biggest decline on the West Coast. Particularly in:

• Seattle (-24.4% year over year)
• Los Angeles (-16%)
• San Diego (-15.8%)
• Anaheim (-15.5%)

And it makes sense. Seattle, Los Angeles, San Diego, and Anaheim are some of the priciest cities in the West Coast, particularly in Southern California.

As mortgage rates rise in these areas, many buyers have become more and more reluctant to purchase in these beautiful SoCal areas.

According to Redfin, closed home sales have also seen a decline nationwide.

For example, in September alone, closed home sales dropped 1.6% month over month to their lowest point since the end of 2023.

Economic uncertainty has been the blame.

Between inflation, rising home prices and mortgage rates, and artificial intelligence threatening job security, Americans are feeling uneasy with today’s U.S. economy.

US Home Foreclosure Data Looks Alarming

U.S. home foreclosure data has also shown a sharp increase in repossessions, with lenders taking back 5,794 properties in August 2026, a 42% increase from a year earlier.

Rising foreclosure activity comes as homeowners continue to face elevated borrowing costs, insurance expenses, and other household bills.

U.S. home foreclosure activity is rising, with new data revealing a significant year-over-year increase in properties repossessed by lenders.

More Housing Market News:

• Housing Costs May Return To ‘Normal’ In 5 Years, Says Senior Economist
• The Housing Market Is Now Shifting Towards Buyers
• Being Able to Buy A New Home Just Got Harder
• See All →

According to real estate data firm ATTOM, lenders repossessed 5,794 properties through completed foreclosures in August 2026.

That represents a 42% increase from August 2025 and a 22% increase from July 2026.

To get a better understanding of how economic constraints are affecting real Americans, here’s are some key figures:

• 40,277 properties had foreclosure filings, up 13% year over year.
• 25,894 properties entered the foreclosure process, up 7% year over year.
• 5,794 properties were repossessed through completed foreclosures, up 42% year over year.
• 22% monthly increase in completed foreclosures compared with July 2026.

Not only are home sales dropping, but Americans are also beginning to lose their homes.

Florida, Texas, and California are the states that had the most home foreclosures.

Will Home Sales Continue Dropping?

The trend shows home sales will continue to drop as the price of homes, mortgage rates, and cost of living rise.

Billionaire and real estate mogul Grant Cardone has stated that America is now a ‘renter nation’.

Meanwhile, more affluent individuals with perfect credit score have been able to weather today’s housing market, contributing to home sales, while profiting from rents and appreciation.

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