{"id":75627,"date":"2022-12-29T10:09:02","date_gmt":"2022-12-29T18:09:02","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=75627"},"modified":"2022-12-30T12:43:16","modified_gmt":"2022-12-30T20:43:16","slug":"housing-market-update-homes-linger-on-market","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-homes-linger-on-market\/","title":{"rendered":"Housing Market Update: Homes Linger on the Market as Buyers Take Their Time"},"content":{"rendered":"

The supply of homes for sale posted a record year-over-year increase this week as homes linger on the market. But some buyers are making their way back, with Redfin\u2019s Homebuyer Demand Index showing an uptick in early-stage demand.\u00a0<\/span><\/i><\/p>\n

The total number of homes for sale rose 18% from a year earlier during the four weeks ending December 25, the biggest increase since at least 2015. Inventory is up even though new listings are down by double digits because homes are taking a long time to sell amid 6%-plus mortgage rates (the average 30-year rate ticked up to 6.42% this week), economic uncertainty and the typically slow holiday season.<\/span><\/p>\n

The typical home was on the market for 40 days before going under contract, more than double the record low of 18 days set in May and the slowest pace since January 2021. Just over one-quarter (28%) of homes went under contract within two weeks, the lowest share since January 2020.\u00a0<\/span><\/p>\n

Some buyers are dipping their toes back in the market, as they\u2019re able to take their time searching. Redfin\u2019s Homebuyer Demand Index\u2013a measure of requests for tours and other Redfin buying services\u2013is up 14% from its October low. Still, we don\u2019t expect sales to tick up until well into January.\u00a0<\/span><\/p>\n

“This week’s mortgage-rate pop can be chocked up to a handful of factors, but the week between Christmas and New Years is typically the slowest of the year for pending sales,” said Redfin Deputy Chief Economist Taylor Marr<\/a>. “We’ll know more about the direction of rates and whether the recent uptick in early-stage demand will translate into sales when we’re settled into the new year.”<\/span><\/p>\n

Home prices fell from a year earlier in 17 of the 50 most populous U.S. metros<\/span><\/h2>\n

Home-sale prices fell year over year in 17 of the 50 most populous U.S. metros during the four weeks ending December 25.\u00a0<\/span><\/p>\n

Prices fell 9% year over year in <\/span>San Francisco<\/span><\/a>, 6.5% in <\/span>San Jose<\/span><\/a>, 6% in <\/span>Los Angeles<\/span><\/a>, 4.5% in <\/span>Detroit<\/span><\/a>, 4.4% in <\/span>Pittsburgh<\/span><\/a>, 3.7% in <\/span>Sacramento<\/span><\/a>, 3.6% in <\/span>Oakland, CA<\/span><\/a> and 2.3% in <\/span>Austin<\/span><\/a>. They fell 2% or less in <\/span>New York<\/span><\/a>, <\/span>Seattle<\/span><\/a>, <\/span>Anaheim, CA<\/span><\/a>, <\/span>Phoenix<\/span><\/a>, <\/span>Chicago<\/span><\/a>, <\/span>Newark, NJ<\/span><\/a>, <\/span>Riverside, CA<\/span><\/a>, <\/span>Boston<\/span><\/a> and <\/span>Washington, D.C.<\/span><\/a><\/p>\n

This marks the first time Boston prices have fallen since at least 2015, as far back as this data goes. It\u2019s the first time Washington, D.C. prices have fallen since 2016.\u00a0<\/span><\/p>\n

Leading indicators of homebuying activity:<\/span><\/h2>\n