New Existing-Home Listings Reach Highest Level Since June

On Thursday, Redfin reported that according to its latest data, new listings of homes increased 7.6% in the four-week period ending December 15th. This is the biggest year-over-year increase since June, except for the four weeks ending on November 24th, when the increase was inflated due to Thanksgiving.

Redfin says that there are several reasons more sellers are placing their home on the market:

• Home prices are high: The median home-sale price is up 6% year-over-year, the second-biggest increase since October 2022.
• Consumer confidence rose to a 16-month high after November’s election, motivating more sellers to make the major financial decision to list their homes.
• Some sellers are hoping to take advantage of the increased homebuying demand Redfin has seen over the last month.

The latest increase in demand is showing signs of strengthening, Redfin said. Redfin’s Homebuyer Demand Index—a seasonally adjusted measure of tours and other buying services from Redfin agents—is up 9% year-over-year and is sitting near its highest level since August 2023. Mortgage-purchase applications are up 18% month-over-month, and pending home sales are up 4.1%—similar to the increases Redfin has seen over the last few months.

Like sellers, many homebuyers are feeling more confident about making a big financial move after the summer and early fall slump, according to Redfin. Declining mortgage rates are another reason more buyers are coming off the fence: The weekly average rate has declined for three weeks in a row to a two-month low of 6.6%. However, mortgage rates may have bottomed out for the time being; daily average rates rose above 7% on December 18th after the Fed signaled it will cut interest rates twice in 2025, instead of four times.