\nU.S. pending home sales fell 5.1% year over year during the four weeks ending February 8, the biggest decline in over a year. That\u2019s according to a new report <\/a>from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nOn a local level, pending sales dropped in all but five of the 50 most populous U.S. metro areas\u2014<\/i>the most in over two years. The only metros where pending sales increased were West Palm Beach, FL (9.1%), Jacksonville, FL (7.7%), Columbus, OH (1.4%) and Chicago (0.1%). They were flat in Austin, TX.<\/p>\n
\nThe biggest declines were in Oakland, CA, where pending sales dropped 21.6% year over year, and Minneapolis (-17.5%). This separate Redfin report<\/a> delves into why homebuying demand is slow in Minneapolis.<\/p>\n Homes are also taking a long time to sell.<\/b> The typical U.S. home that sold took 66 days to go under contract, a week longer than a year earlier and the longest span since early 2019. There are 5.5 months of supply, the most in seven years. Months of supply is the length of time it would take for homes for sale to be bought at the market\u2019s current pace of sales; a higher number indicates more of a buyer\u2019s market.<\/p>\n Would-be buyers are hesitant partly because housing costs are high.<\/b> The median sale price is up 1.2% year over year, and while mortgage rates have come down from their peak, they\u2019re still double pandemic-era lows. Additionally, some house hunters are backing off amid concerns about job security, and in certain parts of the country, they stayed home in recent weeks due to severe winter weather.<\/p>\n There are also slightly fewer homes to choose from.<\/b> New listings fell 1.8% year over year, and the total number of homes for sale dropped about 1%, the first decline since 2023.<\/p>\n There are bright spots in the housing market: Buyers have power, and housing payments are declining.<\/b> Even though new listings are coming down, there are still hundreds of thousands more home sellers than buyers<\/a> in the market, giving the buyers who are out there an edge in negotiations. Some buyers are able to get homes for under asking price<\/a>. And while costs are still high, the median monthly housing payment is down 3.8% year over year while wages are up roughly 4%, improving affordability<\/a>. Redfin agents in several parts of the country say home tours are picking up and house hunters are getting more serious, even if the increased interest isn\u2019t yet showing up in the data.<\/p>\n \n\u201cIt\u2019s still a buyer\u2019s market, but it might not be for long,\u201d said Sue Dhillon<\/a>, a Redfin Premier <\/a>agent in Seattle<\/a>. \u201cHouse hunters are getting a jump start on the spring selling season because they\u2019re doing the math and realizing that a few things are working in their favor: Sellers are pricing lower, mortgage rates have come down slightly and aren\u2019t likely to drop further any time soon, and rents just keep climbing. If buyers wait any longer, competition is likely to pick up.\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