June brought an unexpected turn for US home listings
New listings of US homes dropped 3.2% in June, reaching the lowest seasonally adjusted level since October 2023, according to a new report from real estate brokerage Redfin. The decline marked the steepest month-over-month drop since February 2023. Compared to last year, listings slid 3.4%, reversing the annual gains seen since October.
Active listings also fell slightly—down 0.3% from May—marking the first monthly dip in nearly a year. Despite this, total active listings remained 13.3% higher than a year earlier, hovering near a five-year peak.
“The balance of power in the housing market has shifted toward buyers because listings have piled up and demand has slowed down,” said Redfin senior economist Asad Khan. “Prospective sellers are feeling discouraged by this new reality. Some are reacting by staying put or renting their homes out instead of selling—especially if they’re at risk of taking a haircut.”
Redfin noted that earlier this year, easing mortgage rate lock-in effects led to a supply surge. However, persistent high prices and economic concerns cooled demand, leading sellers to cut prices or reconsider listing altogether.
“For many folks who bought at the peak of the pandemic market, selling might not be the best option right now,” said Connie Durnal, a Redfin Premier agent in Dallas. “I have several clients who purchased their homes in early 2022 and need to move, but the math is just really, really tight. I’m advising them to lease their homes out if they can’t afford to take a loss. I think I will have a lot of clients coming back to list this time next year.”
Home sales sluggish as prices reach record high
Pending home sales dropped 2.2% from May and 2.4% from June 2024, reaching their lowest level since November. Closed sales saw little change, holding at a seasonally adjusted annual rate of 4.16 million—the lowest in nine months.
In June, approximately 57,000 home-purchase contracts were canceled, representing 14.9% of deals—a record high for any June since at least 2017.
The median home price rose to an all-time high of $447,035. Yet, year-over-year price growth remained modest at 1%. Mortgage rates hovered near 7%.
Homes take longer to sell as buyer leverage grows
The typical US home spent 39 days on the market in June, up from 33 days a year prior—the longest June stretch since 2020. Only 30.9% of homes sold above list price, the lowest June share in five years.
Redfin expects home prices may begin declining on an annual basis by late 2025.
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