New Redfin data reported the largest gain since the end of last year occurred in the four weeks ending February 2, when new listings of homes for sale in the U.S. increased 7.9% from a year earlier.
On the purchasing side, pending sales are down 8.1% year-over-year, (YoY) despite a little improvement from the previous month. At early phases of the homebuying process, the situation is comparable: Although it increased little from the previous week, Redfin’s Homebuyer Demand Index, which is a seasonally adjusted indicator of tours and other purchasing services from Redfin agents, is still close to its lowest point since last spring.
“Listings are picking up as we inch toward spring,” said Joe Paolazzi, a Redfin Premier agent in Pittsburgh. “Homeowners have been holding off, waiting for mortgage rates to go down or market conditions to improve, and now it seems clear rates have declined about as much as they’re going to decline for now.”
A larger pool of options is becoming available to homebuyers as a result of the increase in new listings and the decline in sales. With the exception of the previous four-week period, there is the highest supply on the market in six years, with five months available, up from 4.4 months a year ago.
National Housing Market Data — Key Highlights
| U.S. Highlights: Four weeks ending Feb. 2, 2025 | Four weeks ending Feb. 2, 2025 | Year-over-year (YoY) change |
| Median sale price | $376,750 | 4.6% |
| Median asking price | $412,157 | 5.7% |
| Median monthly mortgage payment | $2,784 (At a 6.95% mortgage rate) | 8.3% (Just $21 shy of April’s all-time high) |
| Pending sales | 65,603 | -8.1% |
| New listings | 76,194 | 7.9% (Biggest increase in 5 weeks) |
| Active listings | 897,798 | 12.5% (Smallest increase in nearly a year) |
| Months of supply of homes | 5 | +0.6 pts. to longest span since Feb. 2019, except the prior 4-week period (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 | 29% | Down from 32% |
| Median days on market | 55 | +6 days to longest span in nearly 5 years |
| Share of homes sold above list price | 20.7% | Down from 22% |
| Average sale-to-list price ratio | 98% | Down from 98.1% |
Note: Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
Potential purchasers are delaying for a number of reasons. First, prices are still close to record highs, despite the fact that homes are usually selling for less than the asking price. The median monthly housing payment is now $2,784, up 8.3% year-over-year and only $21 short of the all-time high due to stubbornly high property prices and mortgage rates.
“Sellers are also noticing that even though there are fewer buyers in the market than usual, the buyers who are on the hunt are serious and willing to pay a fair price,” Paolazzi said. “There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.”
It is noteworthy, however, that for the first time since mid-December, daily average mortgage rates fell below 7% this week. Second, some consumers are holding off on making a big purchase because they are unsure of the federal government’s economic policies. Lastly, in January, many homebuyers stayed indoors due to snow and the bitter cold in the Midwest, Northeast, and South.
Metro-Level Highlights — Four weeks ending Feb. 2, 2025
As said, slow sales combined with an increase in new listings is creating a larger supply for homebuyers to pick from. Additionally, it has caused the average property to sell for 2% less than the asking price, which is the largest reduction in two years; yet, housing expenses remain extremely high.
The top five metros with biggest YoY increases in new listings:
- Orlando, FL (27.7%)
- San Jose, CA (26.7%)
- Oakland, CA (26.1%)
- Tampa, FL (25.6%)
- Phoenix (23.8%)
Despite an uptick in these popular Sun Belt cities, new listings declined in 12 U.S. metros.
The top five metros with biggest YoY decreases in new listings:
- Detroit (-13.9%)
- San Antonio (-13.5%)
- Chicago (-11.3%)
- Atlanta (-6.6%)
- Indianapolis (-6.1%)
The top five metros with biggest YoY increases in median sale price:
- Pittsburgh (15.7%)
- New Brunswick, NJ (12.1%)
- Newark, NJ (12.1%)
- Nassau County, NY (11.5%)
- Fort Lauderdale, FL (11.2%)
While many popular cities remain pricey, it’s no surprise that the U.S. median sale price declined in five buzzing metros across the nation.
The top five metros with biggest YoY decreases in median sale price:
- Austin, TX (-5.5%)
- Tampa, FL (-3.5%)
- San Francisco (-1.9%)
- Jacksonville, FL (-0.8%)
- Atlanta (-0.6%)
Leading Indicators of Homebuying Demand & Activity — National
| Recent change | YOY change | Source | |
| Weekly average 30-year fixed mortgage rate | Down from 7.04% 2 weeks earlier, but still near highest level since May | Up from 6.63% | Freddie Mac |
| Mortgage-purchase applications (seasonally adjusted) | Down 4% from a week earlier (as of week ending Jan. 31) | Essentially unchanged (+0.2%) | Mortgage Bankers Association |
| Redfin Homebuyer Demand Index (seasonally adjusted) | Near lowest level since July (as of week ending Feb. 2) | Down 4% | Redfin Homebuyer Demand Index (a measure of tours and other homebuying services from Redfin agents) |
| Touring activity | Up 13% from the start of the year (as of Feb. 3) | At this time last year, it was up 13% from the start of 2024 | ShowingTime |
| Google searches for “home for sale” | Essentially unchanged from a month earlier (as of Feb. 2) | Essentially unchanged | Google Trends |
To read the full report, including more data, charts, and methodology, click here.
