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(NASDAQ: RDFN) — New listings of U.S. homes for sale rose 7.9% from a year earlier during the four weeks ending February 2, the biggest increase since the end of last year. That’s according to a new from Redfin (), the technology-powered real estate brokerage.

On the buying side, pending sales have improved marginally from last month, but they’re still down 8.1% year over year. It’s a similar story at earlier stages of the homebuying process: Redfin’s Homebuyer Demand Index—a seasonally adjusted measure of tours and other buying services from Redfin agents—ticked up slightly from the week before, but remains near its lowest level since last spring.

The uptick in new listings and lack of sales is contributing to a growing pool of supply for homebuyers to choose from. There are 5 months of supply on the market, up from 4.4 months a year earlier and the most in six years, except the prior four-week period. Months of supply is the length of time it would take for the existing supply of homes to be bought up at the market’s current pace; it’s typically used to measure the balance between supply and demand, with a longer span indicating favorable conditions for buyers. The big pool of inventory has led to homes selling for under their asking price: The typical home is selling for 2% less than list price, the biggest discount in nearly two years.

There are several reasons would-be buyers are holding off. First, even though homes are typically selling for under asking price, costs are still near record highs. Stubbornly high home prices and mortgage rates have pushed the median monthly housing payment up to $2,784, up 8.3% year over year to just $21 shy of the all-time high. But it’s worth noting that daily average mortgage rates dropped below 7% this week for the first time since mid-December. Second, some buyers are waiting because they don’t want to make a major purchase amid federal economic policy. And finally, snow and extreme cold across the Midwest, Northeast and South kept many house hunters at home in January.

“Listings are picking up as we inch toward spring,” said , a Redfin agent in Pittsburgh. “Homeowners have been holding off, waiting for mortgage rates to go down or market conditions to improve, and now it seems clear rates have declined about as much as they’re going to decline for now. Sellers are also noticing that even though there are fewer buyers in the market than usual, the buyers who are on the hunt are serious and willing to pay a fair price. There are bidding wars for homes in desirable neighborhoods, and for investment properties that would be easy to rent out.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “” page.

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About Redfin

Redfin () is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit . To learn about housing market trends and download data, visit the . To be added to Redfin's press release distribution list, email . To view Redfin's press center, .

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