\n(NASDAQ: RDFN) \u2014 Homebuyers have the most options since 2020, but few are biting because rising housing costs have made monthly payments tough to swallow. That is according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n
\nPending home sales in January fell to the lowest level on record aside from the start of the pandemic. They dropped 4.2% month over month\u2014the largest decline on a seasonally adjusted basis since August 2023\u2014and 6.3% year over year.<\/p>\n
\nMeanwhile, active listings of homes for sale rose to the highest level since early in the pandemic. They climbed 0.3% month over month on a seasonally adjusted basis in January and 12.9% year over year. New listings hit the highest level since July 2022, increasing 1.9% month over month and 4.7% year over year.<\/p>\n
Housing supply (listings) is increasing for a few key reasons:<\/b><\/p>\n \n\u201cI\u2019m seeing a lot more inventory hit the market than I have in past years, but it\u2019s not nearly enough,\u201d said Charles Wheeler<\/a>, a Redfin Premier<\/a> real estate agent in San Diego. \u201cEconomic fears have been top of mind for people. I have sellers saying, \u2018I think we’re at the top of the market\u2014I\u2019m ready to cash out and put my money into another investment.\u2019 Buyers should know that they have a bit more negotiating power because there are more homes hitting the market. Sellers should know that since buyers have more negotiating power, they should make sure their home is polished and competitively priced if they want to sell it quickly.\u201d<\/p>\n \nIt\u2019s worth noting that price growth is roughly back to where it was before the pandemic, growing 4%-5% a year, as opposed to the double-digit increases seen in 2021-2022. That\u2019s in part because supply and demand is more balanced; the housing shortage has slowly improved as more listings have come on the market. Still, prices continue to climb because, as Wheeler said, there still aren\u2019t enough homes for sale.<\/p>\n \n\u201cOn a national scale, we\u2019re seeing an increase in people selling homes and decrease in people buying homes, bringing supply and demand closer to equilibrium. But the national snapshot masks a lot of regional variation,\u201d said Redfin Senior Economist Elijah de la Campa. \u201cFor example, pending sales are rising from a year ago in expensive coastal markets like San Jose and Seattle, and posting double-digit declines in pandemic boomtowns like Miami and Austin. In Newark, active listings are near an all-time low, but in San Antonio, they\u2019re near a record high.\u201d<\/p>\n \nWinter storms in January may have also impacted sales in some areas.<\/p>\n January 2025 Housing Market Highlights: United States<\/b><\/p>\n\n
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