New Listings of US Existing-Homes For Sale Steadily Increase

Redfin reported on Thursday (1-11-24) that according to its data, in the four week-period ending on Sunday, January 7th, US pending home sales posted their smallest year-over-year decline in two years, down only 3%. There are 9% more new listings than there were a year ago, and while the total number of new listings is down 3% annually, that is the smallest decline since June 2023.

Redfin notes that mortgage applications are up 3% month-over-month and its Homebuyer Demand Index—a seasonally adjusted measure of requests for tours and other buying services from its agents—is up 5% from a month ago.

Redfin agents across the country are reporting that since the start of the year, more sellers have been listing homes and more home tours are being scheduled. In turn, more buyers are applying for mortgages, as rates remain in the mid-6% range, down from 8% in October, and these lower rates are attracting buyers into the marketplace. With lower mortgage rates, the median house payment has decreased $327 (or 12%) from October’s all-time high, and that is motivating sellers to list homes as the lock-in effect (sellers low mortgage rates keeping them in their current homes) is beginning to ease.

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