Home sales posted their biggest annual decline since Redfin started tracking the metric in 2012, according to data released Thursday.

New markets require new approaches and tactics. Experts and industry leaders take the stage at Inman Connect New York in January to help navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here.

Home sales posted the biggest annual decline on record in November as the housing market ground to a near standstill in the face of rising mortgage rates, according to data released Thursday by Redfin.

Home sales fell 35.1 percent annually in November according to data released Thursday by Redfin, the biggest annual drop since the brokerage started tracking the metric in 2012.

November also saw home price growth slow significantly. The average U.S. home sale price grew by only 2.6 percent from the previous year, the smallest rate of growth since the pandemic ground the U.S. economy to a halt in May 2020.

New listings slumped, falling 28.4 percent year over year, also the biggest drop seen since April 2020. Despite the drop in new listings, overall inventory for sale grew by 4.6 percent year over year, suggesting that homes are sitting on the market longer while less homes are being listed.

But as mortgage rates retreated from their highs of above 7 percent there were signs of homebuyer demand awakening slightly, according to Redfin. The brokerage reported a slight downtick in the portion of home purchase agreements that were canceled in November, and both mortgage purchase applications and Redfin’s Homebuyer Demand Index both charted increases.

With inflation slowly retreating and some economists predicting a further decline in mortgage rates next years, Redfin economists said the 2023 housing market may bring some reasons for hope.

“The worst of inflation is likely in the rearview mirror,” Redfin Economics Research Lead Chen Zhao said in a statement. “We do anticipate that mortgage rates will decline slightly further in 2023 as the Fed’s actions continue to bring inflation down, which should ultimately bring more homebuyers back to the market. Still, we have a ways to go until we reach recovery mode, and we may see sales continue to ebb in the short term.”

Email Ben Verde

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×