Business
The New Year Brings More Inventory to the Market
Newly listed homes increase 37.5% month-over-monthHomes actively for sale increase 24.6% compared with last yearShare of listings with price cuts grows 15.6%
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[{"type":"text","content":"Newly listed homes increase 37.5% month-over-monthHomes actively for sale increase 24.6% compared with last yearShare of listings with price cuts grows 15.6% compared with the same time last yearSANTA CLARA, Calif., Jan. 30, 2025 /PRNewswire/ -- Despite recent increases in mortgage rates, January showed a promising change in seller activity as newly listed homes grew 37.5% month-over-month, according to the Realtor.com® January Monthly Housing Report. Out of the top 50 metros, Sacramento (+31.7%), Phoenix (+27.3%), and Seattle (+24.7%) experienced the greatest bumps in newly listed homes this month compared with the same time last year.\n\n\"The shift in seller activity could mark a turning point in the high mortgage rate-induced standoff between buyers and sellers,\" said Danielle Hale, Chief Economist, Realtor.com®. \"The uptick is likely due to some residual benefit from fall's lower mortgage rates, which could fade. But drivers such as the need for families to adapt to life changes and the easing of the lock-in effect, could bring more movement from sellers by year's end.\"\nJanuary 2025 Housing Metrics – National\nMetric\nChange over Jan. 2024\nChange over Jan. 2019\nMedian listing price\n -2.2% (to $400,500)\n+38.4 %\nActive listings\n+25.3 %\n-25.3 %\nNew listings\n+10.8 %\n-18.0 %\nMedian days on market\n+5 days (to 73 days)\n - 8 days\nShare of active listings with price reductions\n+0.9 percentage points (to 15.6%)\n-0.4 percentage points\nMedian List Price Per Sq.Ft.\n+1.2 %\n+54.9 %\nSellers Warm Up to the Market a Little MoreNewly listed homes were 10.8% above last year's levels, an increase from December's slight rise of 0.9%, which puts new listing activity at its highest January level since 2021 and shows sellers are increasingly warming up to the market. A recent Realtor.com analysis showed the share of mortgage holders with a rate under 6% fell to 83%, down from 88% just one year ago. Per the 2025 Realtor.com® Housing Forecast, that share is expected to decline to 75% by the end of the year.\nFurthermore, annual inventory grew for the 15th straight month, with 24.6% more homes actively for sale on a typical day in January compared with the same time in 2024. When it comes to the most active markets, Denver (+54.8%), Las Vegas (+49.4%), and Tucson (+45.0%) experienced the highest increases in active listings yea...