Home sales usually slow in the fall, but they took a more "dramatic" turn down in October, according to Redfin, a national real estate brokerage.
Monthly numbers from the National Association of Realtors will be released next week, but a count by Redfin shows sales in October were flat when compared to a year ago. This is a sharp change from the double-digit annual sales growth in September.
Twenty-seven of 67 metros tracked by Redfin had fewer transactions, including markets like Seattle, Denver, Miami, Dallas and Austin, Texas, which have been some of the strongest markets in the nation, according to Redfin.
Much of the problem is a drop in the already-tight supply of homes for sale, down 4.3 percent from a year ago. New listings grew, but at the slowest pace since May. This is causing fierce competition among buyers, who are making more concessions today just to get the deal. Nearly 16 percent of Redfin offers waived inspection contingencies, up from 8.8 percent a year ago, and 10.5 percent waived financing contingencies, up from 7.6 percent.