There are more than five months of supply on the market, the most since early 2019. Homes are taking a long time to sell largely because housing costs are so expensive–but for buyers who can afford it, there are a fair amount of homes to choose from.

(NASDAQ: RDFN) — Homes are selling at their slowest pace since the start of the pandemic as mortgage rates and home prices remain elevated, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

In addition to homes selling relatively slowly, fewer homes are turning over. This is according to Redfin data as of the four weeks ending January 26:

  • The typical U.S. home listing that went under contract sat on the market for 54 days before the seller accepted an offer, the longest span since March 2020 and a week longer than this time last year. At this time in 2022, during the pandemic-driven homebuying boom, the typical home was selling in 35 days.
  • There were 5.2 months of supply on the market, the most since February 2019 and up from 4.9 months a year earlier. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the market’s current sales pace; a longer span means homes are sitting on the market longer and signals a buyer’s market.
  • Pending home sales were down 9.4% year over year, the biggest decline since September 2023.

Sales are slow because it’s very expensive to buy a home, with mortgage rates sitting near 7% and home prices up 4.8% year over year. The median monthly housing payment is $2,753, just shy of April’s record high. Additionally, extreme weather—including snow and frigid cold in the Midwest, South and Northeast and wildfires in Southern California—are keeping would-be buyers at home.

The market may pick up in the coming weeks as mortgage rates fall—at least slightly—from their early January peak, and new listings tick up. Additionally, Redfin agents expect some buyers to step off the sidelines soon as they get tired of waiting for rates and prices to come down.

“Prospective buyers have been cautious because they’ve seen homes sitting on the market and they’ve heard interest rates and prices may drop. When the market isn’t competitive, some buyers think they should wait for costs to go down,” said Jordan Hammond, a Redfin Premier agent in Raleigh, N.C. “Now it’s pretty clear that sellers aren’t slashing asking prices and mortgage rates aren’t plummeting, so mindsets are shifting. People are starting to believe that if they want or need to move, and they can afford to, they should do it.”

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

7.06% (Jan. 29)

Down from 7.26% 2 weeks earlier

Up from 6.95%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.96% (week ending Jan. 23)

Down from 7.04% a week earlier, but still near highest level since May

Up from 6.69%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Essentially unchanged (down 0.4%) from a week earlier (as of week ending Jan. 24)

Down 7%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Lowest level since June (as of week ending Jan. 26)

Down 1%

 

 

Redfin Homebuyer Demand Index, a measure of tours and other homebuying services from Redfin agents

Touring activity

 

Up 7% from the start of the year (as of Jan. 26)

At this time last year, it was up 8% from the start of 2024

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Up 14% from a month earlier (as of Jan. 26)

Essentially unchanged

 

Google Trends

Key housing-market data

 

U.S. highlights: Four weeks ending Jan. 26, 2025

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.

 

Four weeks ending Jan. 26, 2025

Year-over-year change

Notes

Median sale price

$377,125

4.8%

 

Median asking price

$407,225

5.2%

 

Median monthly mortgage payment

$2,753 at a 6.96% mortgage rate

8%

Highest level since April

Pending sales

59,044

-9.4%

Biggest decline since Sept. 2023

New listings

68,054

2.2%

 

Active listings

889,202

11.3%

Smallest increase in nearly a year

Months of supply

5.2

+0.3 pts. to longest span in nearly 6 years

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

25.7%

Down from 29%

 

Median days on market

54

+7 days to longest span in nearly 5 years

 

Share of homes sold above list price

21%

Down from 23%

 

Average sale-to-list price ratio

98%

Down from 98.1%

 

Metro-level highlights: Four weeks ending Jan. 26, 2025

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Pittsburgh (19.3%)

Milwaukee (16.7%)

Fort Lauderdale, FL (14.2%)

Newark, NJ (13.4%)

Cincinnati (11.7%)

San Francisco (-5.6%)

Austin, TX (-2.6%)

Tampa, FL (-1.5%)

 

Declined in 3 metros

Pending sales

Portland, OR (9.7%)

Milwaukee (2.6%)

 

 

Miami (-24.9%)

Detroit (-24.5%)

Atlanta (-22.7%)

San Diego (-20.1%)

Houston (-19.8%)

Increased in 2 metros

New listings

San Jose, CA (23.4%)

Phoenix (19.5%)

Seattle (15.2%)

Oakland, CA (14.5%)

Sacramento, CA (14.2%)

San Antonio (-17.4%)

Detroit (-16.6%)

Newark, NJ (-14.4%)

Atlanta (-12.9%)

Warren, MI (-11.6%)

Declined in 18 metros

 

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-sales-slow-costs-high

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 $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

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.

Contact Redfin Redfin Journalist Services: Tana Kelley press@redfin.com

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