New home listings jumped 8% year over year during the four weeks ending Dec. 29, according to a report from Redfin.
But it may not be good news. The higher number of listings could be due to a slowdown in overall home sales keeping homes on the market for longer. Redfin’s roundup of housing data points to a year-end slowdown in home sales as interest rates have increased.
The total number of homes for sale during December rose 10% and the daily average 30-fixed mortgage rate reached 7.07% on Jan. 2. The rate was actually down from the daily rate of 7.14% two weeks earlier, but up from 6.7% for the same period last year. Freddie Mac reported that the weekly average 30-year fixed mortgage rate was 6.91% as of Jan. 2.
The Mortgage Bankers Association reported on Dec. 27 that seasonally adjusted mortgage purchase applications were down 13% from two weeks earlier and decreased 17% compared to the same week a year earlier. Redfin’s seasonally adjusted Homebuying Demand Index as of the week Dec. 29 was unchanged from November and down 1% from the year before.
Other signs of a slowing industry include home-touring activity being down 52% from the start of 2024, when compared to 2023. Google searches for “home for sale,” were up 30% in December from the previous month, but down 4% from the same time last year.
Redfin found median home prices at $383,750 for the four weeks ending Dec. 29. The price was up 6.4% year over year, the largest increase since October 2022. Median monthly mortgage payments at a mortgage rate of 6.91% were at $2,515, up 8.1% year over year.
