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Despite an uptick in new listings, homebuyers aren’t rushing into the market. Instead, demand has dipped, leaving a growing supply of homes sitting as buyers remain hesitant about their next move, according to Redfin’s latest data analysis.
Over the four weeks ending Feb. 2, new listings across the U.S. have jumped 7.9 percent from last year to 76,194 — the largest increase since late 2024.
Redfin analysis of MLS data | New Listings of Homes
Metro areas Orlando, Florida (27.7 percent); San Jose, California (26.7 percent); Oakland, California (26.1 percent); Tampa, Florida (25.6 percent); and Phoenix (23.8 percent) saw the sharpest rises in new listings. Meanwhile, 12 metros experienced declines, with the biggest drops in Detroit (-13.9 percent), San Antonio (-13.5 percent) and Chicago (-11.3 percent).
Despite more options to choose from, buyers are holding back.
Inventory has built up to a five-month supply — the highest level in six years, excluding the prior four-week period. Homes are sitting on the market for a median of 55 days, and sellers are having to adjust their expectations, with sale prices averaging 2 percent below asking prices — the biggest discount in nearly two years.
Redfin analysis of MLS data | 5.0 Months of Supply Available on the Market
Pending sales have inched up from last month, but are still down 8.1 percent year over year to 65,603. Redfin’s Homebuyer Demand Index, which tracks tours and other buying activity on a seasonally adjusted basis, remains near its lowest point since last spring.
Potential buyers have remained on the sidelines as high home prices and mortgage rates push the monthly housing payment up 8.3 percent annually to $2,784. On top of that, economic uncertainty and cold winter weather in parts of the country have further slowed house hunting.
However, as spring approaches, that activity could change. Pittsburgh Redfin Premier agent Joe Paolazzi expects more sellers to enter the market soon.
Joe Paolazzi | Redfin Premier agent in Pittsburgh
“Listings are picking up as we inch toward spring,” Paolazzi said. “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.”
While there may be fewer buyers overall, the ones still searching for homes are serious, Paolazzi added. “There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.”
