New listings inched up as some homeowners opted to cash out, fearing that elevated mortgage rates could drive a drop in home prices

New listings climbed 1.4% month over month in September, the largest increase since February 2022 on a seasonally adjusted basis, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s a glimmer of relief for homebuyers, who for months have been waiting for more homes to hit the market.

“A lot of Americans are sitting on piles of money in their homes, and some are opting to cash out even if it means giving up their low mortgage rate; they’re worried there’s a possibility home prices will fall if rates remain elevated. We expect rates to remain high for the foreseeable future,” said Redfin Chief Economist Daryl Fairweather. “But we also expect prices to stay high into next year. Housing supply is so strained that even a small uptick in listings lures buyers off the sidelines, bolstering sales.”

Still, new listings dropped 8.9% on a year-over-year basis in September and remained far below pre-pandemic levels. That’s because mortgage rates hit the highest level in more than two decades, with the average weekly 30-year-fixed rate clocking in at 7.2%. It has since moved even higher, last week hitting a weekly average of 7.63%, and 8% on a daily basis.

The overall supply of homes for sale (active listings) rose 1.9% month over month in September on a seasonally adjusted basis, the largest gain since last summer. But active listings fell 16.9% from a year earlier and remained near the lowest level on record as homeowners continued to feel locked in to their low mortgage rates.

September 2023 Highlights: United States

Pending Home Sales Tick Up, But Deals Fall Through at the Highest Rate in Almost a Year

Pending home sales rose 1.3% month over month to the highest level in nearly a year on a seasonally adjusted basis as more listings hit the market. They were down 12.1% from a year earlier.

But while pending sales—the number of homes going under contract—improved in September, closed sales fell to the lowest level since the onset of the pandemic. They dropped 1.5% from a month earlier and 12.8% from a year earlier on a seasonally adjusted basis.

Pending sales ticking up and closed sales ticking down can be explained partly by a high portion of buyers backing out of contracts due to rising mortgage rates. Roughly 53,000 U.S. home-purchase agreements were canceled in September, equal to 16.3% of homes that went under contract that month—the highest percentage since October 2022, when mortgage rates surpassed 7% for the first time in two decades. That compares with 15.2% a month earlier and 15.8% a year earlier.

“Buyers are extra cautious right now. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out,” said Heather Kruayai, a Redfin Premier Agent in Jacksonville, FL, which saw the second highest rate of deal cancellations among the major metros Redfin analyzed. “Transactions are also falling apart due to skyrocketing insurance premiums and disagreements between buyers and sellers over necessary repairs. Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close the deal.”

Prices Continue to Climb as Lack of Supply Creates Competition

The median U.S. home sale price rose 1.9% year over year to $412,081 in September, and fell 2% from a month earlier—typical for this time of year.

Activity in the housing market is sluggish due to high mortgage rates, but prices remain near their record high because the buyers who are out there are competing for a limited number of homes.

Nearly two of every five homes (37.4%) that went under contract in September did so within two weeks, up from 32.6% a year earlier—a sign of homebuyer competition. Starter homes are particularly competitive right now, Redfin agents say, because housing affordability has fallen so dramatically.

Metro-Level Highlights: September 2023

• Pending sales: In Honolulu, pending sales fell 34.5% year over year, more than any other metro Redfin analyzed. Next came Birmingham, AL (-34.1%) and Colorado Springs, CO (-33.9%). Only three metros saw increases: North Port, FL (5.4%), Detroit (3.3%) and Tampa, FL (2.3%).
• Closed sales: In Tacoma, WA, closed home sales dropped 40.2% year over year, more than any other metro Redfin analyzed. Next came Oxnard, CA (-28.6%) and Fresno, CA (-28.5%). Closed sales rose most in North Port (42.8%), Cape Coral, FL (17.6%) and Tampa (15%).
• Prices: Median sale prices rose most from a year earlier in Rochester, NY (14.6%), Anaheim, CA (13%) and Buffalo, NY (10.9%). They fell in 17 metros, with the steepest declines in Austin, TX (-5.2%), North Port (-3.7%) and San Francisco (-2.5%).
• Listings: New listings fell most from a year earlier in Tacoma (-31.5%), Atlanta (-30.8%) and Houston (-29.9%). They rose most in North Port (33.6%), Cape Coral (30.6%) and Tampa (17.8%).
• Supply: Active listings fell most from a year earlier in Las Vegas (-41.7%), Stockton, CA (-38.2%) and Tacoma (-35.2%). They climbed most in Cape Coral (27.1%), New Orleans (26.5%) and North Port (26.4%).
• Competition: In Rochester, 72.8% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came San Jose, CA (68.6%) and Worcester, MA (66.6%). The shares were lowest in North Port (8.9%), Cape Coral (10.3%) and Austin (12.2%).
• Speed: In Rochester, 71.8% of homes that went under contract did so within two weeks—the highest share among the metros Redfin analyzed. Next came Grand Rapids, MI (64.3%) and Buffalo (62.6%). The lowest shares were in Honolulu (5%), Lake County, IL (11.8%) and Chicago (11.8%).

To view the full report, including charts, tables, a metro-level breakdown and methodology, please visit: https://www.redfin.com/news/housing-market-tracker-september-2023

Attracting and retaining the best employees are two completely different concepts. Hiring the best is usually a streamlined process of seeking out the most qualified and skilled individuals and getting them to view your organization as a positive workplace to be in.

But after hiring is complete, it is their turn to interview you, in a way. They finally get to see what is behind the front door at your organization. Hiring the best employee for the job is one thing, but retaining the best employee for the job is a whole other arena in the business world.

Yes, each of these instances may be difficult, but it is arguable that retention has become the bigger of the challenges.

The Great Resignation of 2020

During the COVID-19 pandemic of 2020, we experienced what is now known as “the Great Resignation.”

On the surface, thousands upon thousands of employees left their jobs for various reasons. But one of the most pervading feelings behind many resigning from their roles was that those individuals took a defining moment in human history, a global pandemic, to search for something offering more personal fulfillment.

Recruiting, training, and benefits can cost $1,500 per employee turnover — a hefty chunk of change if you consider how many employees were exiting their roles during 2020. Retaining employees has now become more crucial than ever to many companies across industries.

A recent study found that the top tenured organizations include HSBC Bank and Neutrogena, with an average 10.2 years worker retention. Some of us cannot fathom top-notch employees staying around that long! So what is their secret?

No one sets out as a business leader to replace team members every year. We all want to keep our best-performing workers, so it is crucial that business leaders understand there is more to employee retention than money.

Align Your Futureview®

The question you are likely asking yourself is: If we are an Anticipatory Organization®, how will this ensure our top employees stay on our payroll?

Futureview.

The term “Futureview” is one I coined some 30 years ago as a fundamental component of the Anticipatory Organization Model. If you are new to my blogs and new to the concept of an aligned Futureview, let me explain:

Futureview is a vivid mental picture each of us holds of our future existence, both personal and professional. It is not a goal or plan — it is the actual image in your mind, good or bad, of what is to come.

Every individual at a business or organization has their own Futureview. Your Futureview is incredibly powerful, as it controls the decisions you choose to make and the actions you forego. We need to analyze what our Futureview actually is, as a positive one can be leveraged as a powerful strategic tool that allows us to take control of the future.

When employees have a positive Futureview about where your organization is heading and their place in it, they are more likely to choose to stay and contribute to the good of the organization and everyone in it. Conversely, when they have a negative Futureview and feel as though the company is headed in a bad direction, morale declines and they begin to hunt for other positions for their own security.

It is your job as a C-suite executive, business leader, or manager to unite the Futureview of your employees as part of your organization! This alignment to a positive Futureview is not an easy task and requires critical thinking, but it is very possible.

Below are some steps to how you can establish a positive Futureview for your employees: 

• Analyze Your Own Futureview

A positive, united Futureview is pervasive. This mindset naturally spreads to those around us at your organization. Do you yourself have a positive attitude about the future or a pessimistic, negative one? Do you see the future as filled with opportunity and abundance? Or is what you see in front of you one of disruption and insurmountable challenges?

You cannot retain quality employees by being a negative leader. So the first step in retaining employees is to first get your own priorities in order. Analyze your own Futureview and make sure it is a positive one. This is a vital steppingstone that allows you to open your workers’ eyes to the bright future you believe in.

• Give Employees Purpose

Are compensation and benefits important? Absolutely! Everyone needs to pay the bills. But is that all you have to offer? Not by a long shot! Employees need more than just money to feel fulfilled and satisfied. 

It is human nature to seek validation, to want to feel heard and seen, and to want to be recognized for our achievements. In addition to competitive salaries, retaining employees means aligning them with a sense of purpose, a reason to want to come to work, and giving honest feedback to let them know that their work has made a difference.

• Foster a Culture of Anticipatory Thinking

We all know those businesses that have had success in the past or that have found quick success, relying on that success for years until they became complacent and then fell behind. Nokia, Kmart, Blockbuster, and others always come to mind. To keep moving into the future and have your employees moving with you, you need to leave the legacy mindset and behavior in the past.

Trying to cling to the “glory days” often leads to a disconnected and disjointed company Futureview. So instead, encourage anticipatory thinking among all of your employees and various managers! Incentivize them to pre-solve predictable problems using my Hard Trend Methodology, and foster a culture of innovation in which everyone contributes and is a stakeholder.

• Reward the Right Behaviors

Believe it or not, many companies inadvertently reward counterproductive behavior. They reward knowledge hoarding, an every-person-for-themselves attitude, and chances to showboat. This leads to the breakdown of a team and fosters selfish mindsets. We have witnessed this time and again in sports teams built around one player who then goes down with an injury.

Don’t foster a culture of competition. Retaining employees involves creating dynamic reward systems based on sharing interdepartmental knowledge, having loyalty, embracing creativity, and meaningful advances in wisdom. Incentivize collaboration by teaching the importance of employee contribution. Proper incentives are a crucial asset in innovation.

These four steps are foundational moves that you can make to align your organization’s Futureview and demonstrate to all employees that you truly value them. Let me be frank once more: Larger salaries do help employees of all levels cover their living expenses adequately. But remember: They can get paid anywhere. They may feel they do not have purpose just anywhere, though!

Employees are strategic assets to the success and significance of an organization, so make sure you find a way to help them be significant in their role!

Connecting creates opportunities. Failing to connect leads to failure. Connecting incorrectly is worse than not connecting at all, because it leads you to believe you are doing something of value but are wasting valuable time. As part of business planning for 2024 it is important to look at how you are connecting with people as well as the people you are connecting with. Here are some simple things to look at: 

• Personal Connections

  • 10 personal calls or interactions per day
  • Birthday calls
  • Anniversary calls (annual reviews)
  • Follow-up or update calls

• Professional Connections

  • Social media posts, tags, or shares
  • Realtor support posts
  • Other Professional shares
  • Product & Service provider posts & shares

• Information/Value Connections

  • Video tutorials
  • Video coupons
  • Video professional support
  • Local event support

Your business relies on connecting with people and by providing exceptional value in the process. The quality of the service is often judged by the quality of the experience. The quality of that experience is often dependent upon how much value those around you feel you represent. Your business plan for 2024 must be connection and value driven. People are attracted to quality and value, especially when making life changing choices. Be that professional that provides exceptional value through an exceptional customer experience and surrounding yourself with others that do the same.

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