Redfin Reports Housing Supply Hits Highest Level Since 2020, But Demand Falls to Lowest Level Since 2020
The typical home that sold sat on the market for 56 days—the longest of any January since 2020
Pending home sales in January fell to the lowest level on record aside from the start of the pandemic. They dropped
Meanwhile, active listings of homes for sale rose to the highest level since early in the pandemic. They climbed
Housing supply (listings) is increasing for a few key reasons:
- The mortgage rate lock-in effect is fading. A lot of homeowners who scored ultra-low mortgage rates during the pandemic have been staying put because moving would mean taking on a higher rate. But most people can’t stay put forever.
- Homes are lingering on the market. The typical home that sold in January was on the market for 56 days. That’s a week longer than a year earlier, and marks the longest period for any January since 2020.
-
Demand is slowing. Listings are also piling up because there are fewer people buying homes. Existing home sales fell
1.7% in January to a seasonally adjusted annual rate of 4.3 million—the largest monthly decline since October 2023. - Housing demand (sales) is decreasing for a few key reasons:
-
Mortgage rates hit an eight-month high. The average interest rate on a 30-year-fixed mortgage was
6.96% in January, up from6.72% a month earlier and the highest level since May. Plus, the median home sale price rose4.1% from a year earlier to . That’s$418,581 45% higher than the January before the pandemic. -
Deals are falling through. Home purchases were canceled at the highest January rate in records dating back to 2017. Roughly 41,000 home-purchase agreements were canceled, equal to
14.3% of homes that went under contract last month. That’s up from13.4% a year earlier. - Economic uncertainty. Tariffs. Reductions in the federal workforce. Return to office mandates. Mortgage rate uncertainty. A lot is up in the air for a lot of Americans right now, and Redfin agents report this is giving buyers (and sellers) cold feet.
“I’m seeing a lot more inventory hit the market than I have in past years, but it’s not nearly enough,” said Charles Wheeler, a Redfin Premier real estate agent in
It’s worth noting that price growth is roughly back to where it was before the pandemic, growing
“On a national scale, we’re seeing an increase in people selling homes and decrease in people buying homes, bringing supply and demand closer to equilibrium. But the national snapshot masks a lot of regional variation,” said Redfin Senior Economist Elijah de la Campa. “For example, pending sales are rising from a year ago in expensive coastal markets like
Winter storms in January may have also impacted sales in some areas.
January 2025 Housing Market Highlights:
|
January 2025 |
Month-over-month change |
Year-over-year change |
Median sale price |
|
- |
|
Existing home sales, seasonally adjusted annual rate |
4,279,856 |
- |
|
Pending home sales, seasonally adjusted |
455,163 |
- |
- |
Homes sold, seasonally adjusted |
423,038 |
- |
|
New listings, seasonally adjusted |
564,642 |
|
|
Total homes for sale, seasonally adjusted (active listings) |
1,795,951 |
|
|
Months of supply |
3.6 |
0.9 |
0.3 |
Median days on market |
56 |
6 |
7 |
Share of homes sold above final list price |
|
-1.9 ppts |
-1.7 ppts |
Share of homes that went off market in two weeks |
|
6 ppts |
-2.2 ppts |
Average sale-to-final-list-price ratio |
|
-0.3 ppts |
-0.2 ppts |
Pending sales that fell out of contract, as % of overall pending sales |
|
-1.4 ppts |
1.0 ppt |
|
0.24 ppts |
0.32 ppts |
Metro-Level Highlights: January 2025
-
Prices: Median sale prices rose most from a year earlier in
Pittsburgh (15.4% ),St. Louis (13.2% ) andAnaheim, CA (13.1% ). They fell in four metros:Tampa, FL (-4% ),Austin, TX (-3.7% ),San Francisco (-2.2% ) andJacksonville, FL (-1.3% ). -
Pending sales: Pending sales rose most in
Portland, OR (11.4% ),San Jose, CA (8.2% ) andMilwaukee (4.7% ). They fell most inDetroit (-19.2% ),Miami (-18.1% ) andAtlanta (-17.4% ). -
Closed home sales: Home sales rose most in
Portland, OR (12.8% ),Providence, RI (10% ) andBoston (9.9% ). They fell most inDetroit (-11.3% ),Miami (-9.4% ) andFort Lauderdale, FL (-8.2% ). -
New listings: New listings rose most in
Seattle (30.8% ),Oakland, CA (27.7% ) andSacramento, CA (25% ). They fell most inKansas City, MO (-11.2% ),Detroit (-9.1% ) andPittsburgh (-8.4% ). -
Active listings: Active listings rose most in
Oakland (31.1% ),Seattle (29.1% ) andCincinnati (28.1% ). They fell in six metros, with the largest declines inNew York (-3.9% ),Newark, NJ (-1.9% ) andChicago (-1.5% ). -
Sold above list price: In Newark,
56.7% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next cameSan Jose (52.7% ) andNassau County, NY (49% ). The lowest shares were inWest Palm Beach, FL (5.5% ),Fort Lauderdale (5.9% ) andMiami (7.5% ).
To view the full report, including charts, please visit: https://www.redfin.com/news/home-sales-fall-supply-rises
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213227630/en/
Contact Redfin
Redfin Journalist Services:
Ally Forsell, 206-588-6863
press@redfin.com
Source: Redfin