December’s slump underscores how fragile US housing demand remains, according to real estate giant
Real estate giant Redfin said pending home sales on its system fell to near‑pandemic lows in December, capping a year in which high borrowing costs and uncertain economic signals continued to sideline both buyers and sellers.
Data showed pending sales declined 5.9% month over month to the weakest seasonally adjusted level on record outside April 2020, and were down 7.4% from a year earlier. The national median sale price edged up 0.5% from a year earlier to $428,742, the highest December level on record.
The brokerage also reported that roughly 16.3% of homes under contract in December fell out of escrow, the highest December share since at least 2017.
Buyers took longer and walked away more often
“Buyers are extremely selective and still think prices are too high,” said Alison Williams, a Redfin Premier agent in Sacramento, California.
“There aren’t a ton of homes on the market, but there are enough for house hunters to feel like they can take their time. One challenge is that many buyers’ purchases are contingent on the sale of their current property, and many sellers aren’t willing to take contingent offers. This has caused a standstill in the market.”
The typical home that went under contract in December spent 60 days on the market, the slowest December pace in a decade and almost a week longer than a year earlier. Redfin also estimated around 40,000 December deals were canceled, equal to more than one in six contracts.
Earlier in December, buyers hesitated with mortgage rates above 6%, while sellers faced growing pressure to negotiate.
“Mortgage rates are buyers’ biggest concern. They want to make sure they’re not paying too much every month,” said Tracy Edwards, a Redfin Premier agent in Raleigh, North Carolina. “Be open to negotiations around repairs and seller concessions, and be realistic about the asking price.”
Sellers retreated, even as some markets stayed hot
On the supply side, new listings slipped 1.4% from November and 4.9% year over year to the lowest level since early 2024.
Active listings fell 1.1% from the prior month, the largest drop since mid‑2023, though they remained modestly higher than a year earlier.
“Breaking even is a win for home sellers in today’s market. Some sellers who bought in the past five years are finding themselves underwater after accounting for closing costs and commissions,” Williams said.
“Buyers see dollar signs if a home is outdated, so sellers should make sure their homes are well maintained and provide a pre‑inspection.”
Conditions varied sharply by metro. Detroit posted the largest annual increase in median sale price, up 8.9%, followed by Newark at 8% and St. Louis at 7.8%. By contrast, Dallas saw prices drop 7.6%, with Oakland down 5.6% and Austin down 4.2%.
Redfin noted that mortgage rates have been easing and that “many sellers are offering concessions”, with the typical home selling for roughly 2% below final list price.
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