Real Estate Rundown September 2026
September 01, 2026
photo credit courtesy of Jakub Zerdzicki via Unsplash
Job Growth Could Reignite Housing Demand Despite Slower Contract Signings
Pending home sales fell 2.3% in July and 2.2% year over year as elevated mortgage rates and record-high home prices continued to challenge affordability. Buyers who remain active are gaining more negotiating power through price reductions, closing-cost assistance, rate buydowns, and other concessions. However, strong employment growth, particularly in Idaho, Utah, Nevada, Texas, Florida, North Carolina, Arizona, and South Carolina, could expand buyer demand if mortgage rates stabilize or decline. With pending contracts still 30% below 2019 levels despite payroll employment being 5% higher, the market may be building substantial pent-up demand that could translate into greater housing and relocation activity as affordability and inventory improve.
Mortgage Rates Face Volatility Ahead of September Fed Meeting
Mortgage rates could experience increased volatility ahead of the Federal Reserve’s September 16 meeting, as Chair Warsh’s inflation-focused Jackson Hole speech raised expectations that another rate hike may be possible. Although upcoming reports on job creation, unemployment, job openings, and inflation will help shape the decision, inflation appears to be the Fed’s primary concern, with futures markets currently estimating roughly a two-thirds chance of a hike. For homebuyers, sellers, and real estate professionals, the uncertainty could lead to short-term swings in borrowing costs until new economic data clarifies the Fed’s next move.
Rental Demand Gains Momentum as Home Sales Slow
Zillow’s August forecast indicates a growing divide between the rental and for-sale housing markets, as affordability pressures and elevated mortgage rates continue to deter more prospective buyers from purchasing homes. Single-family rents are projected to rise 2.1% in 2026, while multifamily rents are expected to increase 1.8%, with several major markets showing signs of renewed momentum. Meanwhile, home values are forecast to grow just 0.3%, as inventory continues to outpace sales and gives buyers greater negotiating power. Existing-home sales are expected to increase 1.5% for the full year, but that gain reflects a stronger first half, with sales projected to fall 3.2% year over year in the fourth quarter and remain well below pre-pandemic levels.
Foreclosure Activity Rises but Remains Historically Low
U.S. foreclosure filings reached 39,906 properties in July, increasing 1% from June and 10% year over year, while completed foreclosures rose 23% from July 2025. Nevada, South Carolina, and Florida recorded the nation’s highest foreclosure rates, while Texas led in foreclosure starts and completed repossessions. Although the increases suggest that financial pressures are affecting more homeowners, overall foreclosure activity remains below pre-pandemic and historical levels, indicating that the broader housing market continues to show resilience.
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