\n(NASDAQ: RDFN) \u2014 New listings of U.S. homes for sale rose 7.9% from a year earlier during the four weeks ending February 2, the biggest increase since the end of last year. That\u2019s according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n
On the buying side, pending sales have improved marginally from last month, but they\u2019re still down 8.1% year over year.<\/b> It\u2019s a similar story at earlier stages of the homebuying process: Redfin\u2019s Homebuyer Demand Index\u2014<\/i>a seasonally adjusted measure of tours and other buying services from Redfin agents\u2014<\/i>ticked up slightly from the week before, but remains near its lowest level since last spring.<\/p>\n
The uptick in new listings and lack of sales is contributing to a growing pool of supply for homebuyers to choose from.<\/b> There are 5 months of supply on the market, up from 4.4 months a year earlier and the most in six years, except the prior four-week period. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the market\u2019s current pace; it\u2019s typically used to measure the balance between supply and demand, with a longer span indicating favorable conditions for buyers. The big pool of inventory has led to homes selling for under their asking price: The typical home is selling for 2% less than list price, the biggest discount in nearly two years.<\/p>\n
There are several reasons would-be buyers are holding off.<\/b> First, even though homes are typically selling for under asking price, costs are still near record highs. Stubbornly high home prices and mortgage rates have pushed the median monthly housing payment up to $2,784, up 8.3% year over year to just $21 shy of the all-time high. But it\u2019s worth noting that daily average mortgage rates dropped below 7% this week for the first time since mid-December. Second, some buyers are waiting because they don\u2019t want to make a major purchase amid uncertain <\/a>federal economic policy. And finally, snow and extreme cold across the Midwest, Northeast and South kept many house hunters at home in January.<\/p>\n \n\u201cListings are picking up as we inch toward spring,\u201d said Joe Paolazzi<\/a>, a Redfin Premier<\/a> agent in Pittsburgh. \u201cHomeowners 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\u2019re going to decline for now. 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. There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.\u201d<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20250206457980\/en\/1407505\/3\/Redfin_Standard_Web_Logo.jpg\"){kind=logo}
<\/td>\n<\/tr>\n