Redfin Reports Pending Home Sales Decline Due to High Housing Costs, California Wildfires and Frigid Weather in Other Parts of U.S.
Pending sales posted their biggest decline in over a year this week, as did new listings. But mortgage-purchase applications are on the rise, and mortgage rates are coming down.
Redfin’s Homebuyer Demand Index—a seasonally adjusted measure of tours and requests for other buying services from Redfin agents—is down
But there are some pieces of encouraging news for homebuyers and the housing market. Mortgage rates are falling after the latest CPI report showed softer-than-expected core inflation, perhaps bringing some relief to hopeful buyers. And mortgage-purchase applications jumped this week to their highest level in nearly a year, signaling that pending sales may improve in the weeks to come. It’s also worth noting that it’s too early in the new year to determine how 2025’s housing market will shape up.
For now, high housing costs are one reason pending sales are declining. Many would-be buyers are priced out, with the median housing payment nationwide sitting at its highest level in over two months. Home sale prices are up
The wildfires are simultaneously pushing down homebuying demand and listings in the
But local real estate agents are reporting a surge in demand—especially for rentals—from people who have been directly impacted by wildfire damage. Many of the thousands of
“There’s a feeling of overwhelming sadness and stress about the destruction we’re seeing in so many neighborhoods,” said Susan Brown, a Redfin Premier agent in the
Cold, snow slowing housing market in the Northeast, Midwest
In much of the rest of the country, frigid temperatures and snow are keeping house hunters at home, and delaying homeowners from listing.
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Leading indicators
Indicators of homebuying demand and activity |
||||
|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
|
Rates hit |
Up from |
Mortgage News Daily |
Weekly average 30-year fixed mortgage rate |
|
Highest level since July |
Up from |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Up |
Down |
Mortgage Bankers Association |
Redfin Homebuyer Demand Index (seasonally adjusted) |
|
Down (as of week ending Jan. 12) |
Up
|
Redfin Homebuyer Demand Index, a measure of tours and other homebuying services from Redfin agents |
Google searches for “home for sale” |
|
Up |
Down
|
Google Trends |
Key housing-market data
Redfin’s national metrics include data from 400+ |
|||
|
Four weeks ending Jan. 12, 2025 |
Year-over-year change |
Notes |
Median sale price |
|
|
|
Median asking price |
|
|
|
Median monthly mortgage payment |
|
|
Highest level since October |
Pending sales |
49,136 |
- |
Biggest decline since October 2023 |
New listings |
47,890 |
- |
Biggest decline since September 2023 |
Active listings |
873,497 |
|
Smallest increase in nearly a year |
Months of supply |
4.6 |
+0.3 pts. |
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions |
Share of homes off market in two weeks |
|
Down from |
|
Median days on market |
50 |
+6 days |
|
Share of homes sold above list price |
|
Down from |
|
Average sale-to-list price ratio |
|
Essentially unchanged |
|
Metro-level highlights: Four weeks ending Jan. 12, 2025
Redfin’s metro-level data includes the 50 most populous |
|||
|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year decreases |
Notes |
Median sale price |
|
|
Declined in 3 metros |
Pending sales |
|
|
Increased in 2 metros
|
New listings |
|
|
Increased in 17 metros |
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-pending-home-sales-decline
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/20250116834213/en/
Contact Redfin
Redfin Journalist Services:
Tana Kelley
press@redfin.com
Source: Redfin