\nThe typical U.S. home that sold in January spent 64 days on the market before going under contract, the longest span in six years and roughly a week longer than a year earlier. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket. But while 2026 is off to a sluggish start, there are signs the Great Housing Reset<\/a> predicted by Redfin economists could be on the horizon.<\/p>\n
In Addition to Homes Selling at Their Slowest Pace in 6 Years, Pending Sales Are Down<\/b><\/p>\n
\nPending home sales fell 3.3% year over year, in line with the declines Redfin has seen over the last few months.<\/p>\n
\nThe bright spot of the slow market is that the buyers who are out there have negotiating power; home sellers are outnumbering buyers<\/a> by a record gap.<\/p>\n Would-Be Buyers Are Hesitant Partly Due to High Costs. The Good News: Costs Are Slowly Coming Down.<\/b><\/p>\n \nHouse hunters are taking their time\u2014and some would-be buyers are backing off entirely\u2014because the economy remains uncertain and housing costs are high. Many Americans are hesitant to make a major purchase<\/a> while the economy feels uncertain and waves of layoffs hit workers. The weekly average mortgage rate of 6.1% is near its lowest level in three years, but still double pandemic-era lows, and the median home-sale price is $379,950, up 1.2% from a year ago.<\/p>\n \nWhile costs are high, they are coming down and affordability is improving. The median monthly mortgage payment is $2,559, down nearly 5% year over year, and wages are up roughly 4%.<\/p>\n More Sellers Are Listing Their Homes<\/b><\/p>\n \nOn the selling side, new listings rose 1.1% year over year, the third straight week of increases after two straight months of declines.<\/p>\n Redfin Agents Forecast Modest Housing-Market Recovery in 2026<\/b><\/p>\n Redfin Premier<\/a> agent Monica DiSchiano<\/a> in Austin, home to the slowest housing market in the country, said she\u2019s hopeful 2026 will be busier for both homebuyers and sellers than last year. \u201cThe local market is slowly returning to stability,\u201d DiSchiano said. \u201cJanuary was pretty busy on the selling side, largely because homeowners have finally come to terms with slower demand and lower sale prices than we were seeing during the pandemic buying boom. And house hunters who had disappeared are trickling back\u2014but they\u2019re picky and they want perfection if they\u2019re shelling out for a 6%-plus mortgage rate.\u201d<\/p>\n Ben Ambroch<\/a>, a Redfin Premier agent in Milwaukee\u2014where home-sale prices are rising more than anywhere else in the country\u2014also said he expects 2026 to become more balanced as time goes on. \u201cWith each passing month I see more sellers willing to forgo record-low rates and accept that it\u2019s time to move,\u201d he said. \u201cThat\u2019s leading to more inventory, which is helping attract buyers. I\u2019m seeing a steady stream of house hunters touring homes, though they are taking their time, requesting inspections, and negotiating with sellers.\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