Lower rates lured more sellers, but buyers still took their time
New listings inched higher in late January, offering a sliver of relief to inventory‑starved originators, even as the United States housing market remained firmly tilted toward choosy buyers.
Data from real estate giant Redfin showed new listings rose roughly 1% year over year in the four weeks ending January 25, with about 69,655 homes hitting the market nationwide. That's the first such increase in more than two months.
Pending sales dipped 1.6%, the smallest decline since early December, and active listings were up just 0.6%, the weakest increase in more than two years. Median sale prices edged up 0.8% to around $378,750, while the typical monthly payment fell 6.6% from a year earlier to about $2,496 at a 6.09% rate.
Lower rates eased lock‑in, nudged demand
The weekly average 30‑year fixed mortgage rate sat near 6.1% in late January, down from nearly 7% a year earlier and close to a three‑year low, according to Freddie Mac. That shift, along with stronger incomes and moderating prices, helped loosen the rate lock‑in effect that sidelined would‑be sellers through much of 2024–25.
Redfin estimated that homes still took a median 63 days to go under contract in January, with just 19.2% selling above list and an average sale‑to‑list ratio of 97.7%. That's a week longer than a year earlier and the slowest pace in at least three years.
Buyers leaned on leverage and concessions
On the ground, agents described a market where borrowers had room to negotiate.
“Buyers are more serious than they were a few months ago; they’re looking at every listing and meticulously comparing the pros and cons of each one,” said Connie Durnal, a Redfin Premier agent in Dallas.
“Buyers are able to take their time and be picky because there are a lot of listings; bidding wars are few and far between. Sellers who need to move know they need to be realistic; some are willing to negotiate prices down and make concessions like repairs, especially because they’re competing with builders of new construction.”
Lower rates and slightly better affordability brought more listings and a trickle of demand back to market, but deals still moved slowly and on buyers’ terms.
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