Slowing Demand Leaves Homebuyers With More Options MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 New Redfin data reported the largest gain since the end of last year occurred in the four weeks ending February 2nd, when new listings of homes for sale in the U.S. increased seven point nine percent from a year earlier.

 On the purchasing side, pending sales are down eight point one percent year-over-year, (YoY) despite a little improvement from the previous month. At early phases of the homebuying process, the situation is comparable: Although it increased little from the previous week, Redfin’s Homebuyer Demand Index, which is a seasonally adjusted indicator of tours and other purchasing services from Redfin agents, is still close to its lowest point since last spring.

 “Listings are picking up as we inch toward spring,” said Joe Paolazzi, a Redfin Premier agent in Pittsburgh. “Homeowners 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’re going to decline for now.”

 A larger pool of options is becoming available to homebuyers as a result of the increase in new listings and the decline in sales. With the exception of the previous four-week period, there is the highest supply on the market in six years, with five months available, up from four point four months a year ago.

National Housing Market Data — Key Highlights

Note: Redfin’s national metrics include data from four hundred plus U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. 

 Potential purchasers are delaying for a number of reasons. First, prices are still close to record highs, despite the fact that homes are usually selling for less than the asking price. The median monthly housing payment is now $2,784, up eight point three percent year-over-year and only $21 short of the all-time high due to stubbornly high property prices and mortgage rates.

 “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,” Paolazzi said. “There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.”

 It is noteworthy, however, that for the first time since mid-December, daily average mortgage rates fell below seven percent this week. Second, some consumers are holding off on making a big purchase because they are unsure of the federal government’s economic policies. Lastly, in January, many homebuyers stayed indoors due to snow and the bitter cold in the Midwest, Northeast, and South.

Metro-Level Highlights — Four weeks ending Feb. 2, 2025

 As said, slow sales combined with an increase in new listings is creating a larger supply for homebuyers to pick from. Additionally, it has caused the average property to sell for two percent less than the asking price, which is the largest reduction in two years; yet, housing expenses remain extremely high.

The top five metros with biggest YoY increases in new listings:

1. Orlando, FL (27.7%)
2. San Jose, CA (26.7%)
3. Oakland, CA (26.1%)
4. Tampa, FL (25.6%)
5. Phoenix (23.8%)

Despite an uptick in these popular Sun Belt cities, new listings declined in 12 U.S. metros.

The top five metros with biggest YoY decreases in new listings:

1. Detroit (-13.9%)
2. San Antonio (-13.5%)
3. Chicago (-11.3%)
4. Atlanta (-6.6%)
5. Indianapolis (-6.1%)

The top five metros with biggest YoY increases in median sale price:

1. Pittsburgh (15.7%)
2. New Brunswick, NJ (12.1%)
3. Newark, NJ (12.1%)
4. Nassau County, NY (11.5%)
5. Fort Lauderdale, FL (11.2%)

While many popular cities remain pricey, it’s no surprise that the U.S. median sale price declined in five buzzing metros across the nation.

The top five metros with biggest YoY decreases in median sale price:

1. Austin, TX (-5.5%)
2. Tampa, FL (-3.5%)
3. San Francisco (-1.9%)
4. Jacksonville, FL (-0.8%)
5. Atlanta (-0.6%)

Leading Indicators of Homebuying Demand & Activity — National

To read the full report, including more data, charts, and methodology, click here.

The post Slowing Demand Leaves Homebuyers With More Options  first appeared on The MortgagePoint.

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