SEATTLE--(BUSINESS WIRE)--

(NASDAQ: RDFN) — Homes are selling at their slowest pace since the start of the pandemic as mortgage rates and home prices remain elevated, according to a new from Redfin (), the technology-powered real estate brokerage.

In addition to homes selling relatively slowly, fewer homes are turning over. This is according to Redfin data as of the four weeks ending January 26:

• The typical U.S. home listing that went under contract sat on the market for 54 days before the seller accepted an offer, the longest span since March 2020 and a week longer than this time last year. At this time in 2022, during the pandemic-driven homebuying boom, the typical home was selling in 35 days.
• There were 5.2 months of supply on the market, the most since February 2019 and up from 4.9 months a year earlier. 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 sales pace; a longer span means homes are sitting on the market longer and signals a buyer’s market.
• Pending home sales were down 9.4% year over year, the biggest decline since September 2023.

Sales are slow because it’s very expensive to buy a home, with mortgage rates sitting near 7% and home prices up 4.8% year over year. The median monthly housing payment is $2,753, just shy of April’s record high. Additionally, extreme weather—including snow and frigid cold in the Midwest, South and Northeast and wildfires in Southern California—are keeping would-be buyers at home.

The market may pick up in the coming weeks as mortgage rates fall—at least slightly—from their early January peak, and new listings tick up. Additionally, Redfin agents expect some buyers to step off the sidelines soon as they get tired of waiting for rates and prices to come down.

“Prospective buyers have been cautious because they’ve seen homes sitting on the market and they’ve heard interest rates and prices may drop. When the market isn’t competitive, some buyers think they should wait for costs to go down,” said , a Redfin agent in Raleigh, N.C. “Now it’s pretty clear that sellers aren’t slashing asking prices and mortgage rates aren’t plummeting, so mindsets are shifting. People are starting to believe that if they want or need to move, and they can afford to, they should do it.”

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

To view the full report, including charts, please visit:

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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