Increase in New Listings of Existing-Homes For Sale Offset by Higher Mortgage Rates

On Thursday, Redfin reported that for the four-week period ending on February 18th, new home listings rose 10% year-over-year—the biggest increase in two months. Redfin says the growth is a result of sellers hoping to take advantage of higher prices, with sales prices of existing homes up 6% year-over-year, the largest increase since October 2022.

Redfin notes that there is a downside as well, as many buyers are still sitting on the sidelines. Mortgage-purchase applications dropped 10% from a week earlier as daily average mortgage rates surpassed 7% for the first time since mid-December, and pending home sales are down 7% year-over-year, similar to the declines seen since mid-January.

However, some house hunters are jumping into the earliest stages of homebuying: Redfin’s Homebuyer Demand Index, which measures requests for tours and homebuying assistance from Redfin agents, is up from the low point it dropped to in mid-January, when harsh weather was freezing up demand.

Redfin says their agents are reporting that today’s buyers are mostly interested in move-in ready homes because they don’t want to spend money on repairs and renovations in addition to high monthly payments. Redfin agents are also recommending that sellers be open to providing some sort of financial concession to help ease the pain of current mortgage rates.