{"id":73763,"date":"2022-01-27T07:00:42","date_gmt":"2022-01-27T15:00:42","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=73763"},"modified":"2022-10-26T13:02:10","modified_gmt":"2022-10-26T20:02:10","slug":"housing-market-update-hottest-january-ever","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-hottest-january-ever\/","title":{"rendered":"Housing Market Update: Hottest January on Record Despite 1st Pending-Sales Decline Since June 2020"},"content":{"rendered":"

Pending sales posted their first annual decline since June 2020, stalled due to a lack of supply. Early spring has the potential to be even hotter and more volatile: stock-market declines, mortgage-rate increases and mounting affordability pressures may eventually leave overpriced listings piling up on the market.<\/h2>\n

Homebuyers are grappling with the hottest January on record, as 45% of homes now find a buyer within two weeks on the market. Thirty-five percent go under contract within a week. Both rates are the highest we\u2019ve ever seen for this time of year.<\/p>\n

Despite the market\u2019s unprecedented intensity, pending home sales were down 1% during the four weeks ending January 23, the first year-over-year decline since June 2020. The stalling sales are not for a lack of buyers–the Redfin Homebuyer Demand Index was up 9%\u2014but rather a lack of sellers.<\/p>\n

\u201cBuyers who have been looking for a home since last year are tired of the search and just want to be done,\u201d said Indianapolis Redfin real estate agent Jill Thompson<\/a>. \u201cMany sellers seem to be waiting until spring, so the inventory shortage is especially intense right now, leading to a renewed surge of bidding wars and buyers making offers that waive inspection and financing contingencies.\u201d<\/p>\n

New listings fell 12%, the largest drop since June 2020, dragging the total number of homes for sale to another new low. Homeowners who are on the market appear to be feeling quite confident; the median asking price climbed 13% to $360,281, just shy of October\u2019s all-time high.<\/p>\n

\u201cThe early spring is poised to be the hottest housing market on record; we may start to see most homes going under contract within two weeks, but these conditions are likely to be short-lived,\u201d said Redfin Chief Economist Daryl Fairweather<\/a>. \u201cNow that the stock market is down about 10% from the start of the year and mortgage rates are up nearly half a point, the housing market could lose its luster soon. If that happens, I expect the inventory shortage to finally reach its nadir because overpriced homes will start to pile up on the market.\u201d<\/p>\n

Key housing market takeaways for 400+ U.S. metro areas:<\/h3>\n

Unless otherwise noted, the data in this report covers the four-week period ending January 23<\/strong>. Redfin\u2019s housing market data goes back through 2012.<\/p>\n

Data based on homes listed and\/or sold during the period:<\/h4>\n