It's over (contract cancellations surge 70%)

See which housing markets are heading for price declines in 2027 with Reventure App's housing forecasts: https://www.reventure.app/map/R7YH2Ebgn8

The U.S. housing market just experienced one of its worst months in history. Pending home sales plunged to their lowest level on record in September 2026, while homebuilder sentiment collapsed to a 14-year low. And these warning signs suggest the housing downturn could get significantly worse heading into 2027.

According to the National Association of Realtors, the pending home sales index fell to just 66, down 7% month over month and 11% year over year. Contract signings are now approximately 50% below their pandemic peak and 35% to 40% below pre-pandemic levels. Meanwhile, homebuilder sentiment has fallen to just 29 out of 100, comparable to levels seen during the aftermath of the 2008 housing crash.

But something unusual is happening. While much of the country is experiencing weakening demand and rising inventory, wealthy housing markets around New York City, San Francisco, and Chicago are continuing to see strong home price growth.

I'm touring Eastchester in Westchester County, New York, where home values have increased approximately 9.5% over the last year. Some homes are renting for $8,000 to $10,000 per month, supporting prices that remain out of reach for most Americans.

In this video, I break down:

• Why pending home sales have fallen to their lowest level on record
• The 14-year collapse in homebuilder confidence and what it means for 2027
• Why Westchester County, San Francisco, and Chicago are defying the national housing downturn
• How rental prices help explain why certain expensive housing markets continue appreciating
• Why Tennessee, Colorado, and Washington now have some of the largest inventory surpluses
• How Federal Reserve interest rate decisions could worsen an already struggling housing market
• Where buyers may have the greatest negotiating power heading into 2027