\n(NASDAQ: RDFN) \u2014 New listings of homes for sale are up 7.6%, the biggest year-over-year increase since June (except the four weeks ending November 24, when the increase was inflated due to Thanksgiving), according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage. This is based on data from the four weeks ending December 15.<\/p>\n
There are several reasons more sellers are putting their homes on the market. <\/b>One, home prices are high; the median U.S. home sale price is up 6% year over year, the second-biggest increase since October 2022. Two, consumer confidence rose to a 16-month high after November\u2019s election, motivating more sellers to make the major financial decision to list their homes. And finally, some sellers are hoping to take advantage of the increased homebuying demand Redfin has seen over the last month.<\/p>\n
The latest demand signals show it is continuing to strengthen.<\/b> Redfin\u2019s Homebuyer Demand Index\u2014a seasonally adjusted measure of tours and other buying services from Redfin agents\u2014is up 9% year over year, and is sitting near its highest level since August 2023. Mortgage-purchase applications are up 18% month over month, and pending home sales are up 4.1%, similar to the increases Redfin has seen over the last few months. Like sellers, many homebuyers are feeling more confident about making a big financial move after the summer and early fall slump. Declining mortgage rates are another reason more buyers are coming off the fence: The weekly average rate has declined for three weeks in a row to a two-month low of 6.6%. It\u2019s worth noting that mortgage rates may have bottomed out for the time being; daily average rates rose above 7% on December 18 after the Fed signaled<\/a> it will cut interest rates twice in 2025, instead of four times.<\/p>\n \n\u201cWe\u2019re having a busier winter than usual; I have a handful of listings ready to hit the market right after the new year. This time last year, it was crickets,\u201d said David Palmer<\/a>, a Redfin Premier<\/a> agent in the Seattle area. \u201cBuyers are coming out of the woodwork because they\u2019ve accepted that rates in the 6% to 7% range are the new normal, and they know that if they wait to buy, mortgage rates will probably stay the same but prices will be higher.\u201d<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p>\n Leading indicators<\/b><\/p>\n
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