Redfin Reports The Typical Home Is Taking Nearly 2 Months to Sell. That’s The Slowest Pace in 5 Years.
There are more than five months of supply on the market, the most since early 2019. Homes are taking a long time to sell largely because housing costs are so expensive–but for buyers who can afford it, there are a fair amount of homes to choose from.
Homes are selling at their slowest pace since the start of the pandemic as mortgage rates and home prices remain elevated, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
In addition to homes selling relatively slowly, fewer homes are turning over. This is according to Redfin data as of the four weeks ending January 26:
- The typical U.S. home listing that went under contract sat on the market for 54 days before the seller accepted an offer, the longest span since March 2020 and a week longer than this time last year. At this time in 2022, during the pandemic-driven homebuying boom, the typical home was selling in 35 days.
- There were 5.2 months of supply on the market, the most since February 2019 and up from 4.9 months a year earlier. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the market’s current sales pace; a longer span means homes are sitting on the market longer and signals a buyer’s market.
- Pending home sales were down 9.4% year over year, the biggest decline since September 2023.
Sales are slow because it’s very expensive to buy a home, with mortgage rates sitting near 7% and home prices up 4.8% year over year. The median monthly housing payment is $2,753, just shy of April’s record high. Additionally, extreme weather—including snow and frigid cold in the Midwest, South and Northeast and wildfires in Southern California—are keeping would-be buyers at home.
The market may pick up in the coming weeks as mortgage rates fall—at least slightly—from their early January peak, and new listings tick up. Additionally, Redfin agents expect some buyers to step off the sidelines soon as they get tired of waiting for rates and prices to come down.
“Prospective buyers have been cautious because they’ve seen homes sitting on the market and they’ve heard interest rates and prices may drop. When the market isn’t competitive, some buyers think they should wait for costs to go down,” said Jordan Hammond, a Redfin Premier agent in Raleigh, N.C. “Now it’s pretty clear that sellers aren’t slashing asking prices and mortgage rates aren’t plummeting, so mindsets are shifting. People are starting to believe that if they want or need to move, and they can afford to, they should do it.”
| Metro-level highlights: Four weeks ending Jan. 26, 2025 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. | |||
| Metros with biggest year-over-year increases | Metros with biggest year-over-year decreases | Notes | |
| Median sale price | Pittsburgh (19.3%) Milwaukee (16.7%) Fort Lauderdale, FL (14.2%) Newark, NJ (13.4%) Cincinnati (11.7%) | San Francisco (-5.6%) Austin, TX (-2.6%) Tampa, FL (-1.5%) | Declined in 3 metros |
| Pending sales | Portland, OR (9.7%) Milwaukee (2.6%) | Miami (-24.9%) Detroit (-24.5%) Atlanta (-22.7%) San Diego (-20.1%) Houston (-19.8%) | Increased in 2 metros |
| New listings | San Jose, CA (23.4%) Phoenix (19.5%) Seattle (15.2%) Oakland, CA (14.5%) Sacramento, CA (14.2%) | San Antonio (-17.4%) Detroit (-16.6%) Newark, NJ (-14.4%) Atlanta (-12.9%) Warren, MI (-11.6%) | Declined in 18 metros |
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-home-sales-slow-costs-high
