Housing Market Update: Homebuying Demand Shows Early Signs of Rebound Following Weeks of Declining Mortgage Rates and Increasing Listings

By Published On: December 29th, 20233.3 min read
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Declining mortgage rates and a double-digit increase in new listings are bringing house hunters off the sidelines, with pending sales posting their smallest decline in about 20 months. 

We’re taking a break from analysis this week, but please see the tables and charts below for this week’s housing-market data. We’ll be back with full commentary in next week’s report. Happy holidays!

Leading indicators

Indicators of homebuying demand and activity
Value (if applicable) Recent change Year-over-year change Source
Daily average 30-year fixed mortgage rate 6.61% (Dec. 27) Lowest level since May Up slightly from 6.50% Mortgage News Daily 
Weekly average 30-year fixed mortgage rate 6.67% (week ending Dec. 21) Lowest level since June Up from 6.27% Freddie Mac
Mortgage-purchase applications (seasonally adjusted) Down 1% from a week earlier; up 7% from a month earlier (as of week ending Dec. 15, the most recent week for which data is available) Down 18% Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted) Up 6% from a month earlier (as of the week ending Dec. 24)  Down 6% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale” Up 8% from a month earlier (as of Dec. 23) Unchanged Google Trends 

Key housing-market data

U.S. highlights: Four weeks ending December 24, 2023

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. 

Four weeks ending December 24, 2023 Year-over-year change Notes
Median sale price $364,250 4.5% Biggest increase since Oct. 2022. Prices are up partly because rapidly rising mortgage rates were hampering prices during this time last year
Median asking price $363,484 5.1%
Median monthly mortgage payment $2,401 at a 6.67% mortgage rate 7.3% Down $334 (-12.2%) from all-time high set during the four weeks ending Oct. 22. Lowest level since February.
Pending sales 57,600 -4% Smallest decline since March 2022
New listings 53,243 12.2% Biggest uptick since June 2021. The increase is partly because new listings were falling at this time last  year. 
Active listings 817,863 -3.8% Smallest decline since June
Months of supply  3.6 months +0.2 pts.  4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. 
Share of homes off market in two weeks  27.4% Up from 25%
Median days on market 39 -2  days
Share of homes sold above list price 25% Up from 23%
Share of homes with a price drop 5% +0.8 pts.
Average sale-to-list price ratio  98.5% +0.5 pts. 

 

Metro-level highlights: Four weeks ending December 24, 2023

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. 

Metros with biggest year-over-year increases Metros with biggest year-over-year decreases Notes
Median sale price Anaheim, CA (18.2%)

Newark, NJ (17%)

Fort Lauderdale, FL (13.6%)

West Palm Beach, FL (13.2%)

Miami (12.6%)

Austin, TX (-4%)

Fort Worth, TX (-2.2%)

San Francisco (-1.1%)

Declined in 3 metros 
Pending sales Dallas (8.5%)

Milwaukee (8.4%)

Austin (5.1%)

Orlando, FL (5%)

Fort Worth, TX (4.6%)

Providence, RI (-15.2%)

Virginia Beach, VA (-10.6%)

Jacksonville, FL (-10.2%)

West Palm Beach (-10.2%)

Tampa, FL (-9.6%)

Increased in 14 metros
New listings Phoenix (31.5%)

San Antonio (25.6%)

Dallas (21.4%)

Washington, D.C. (20.6%)

Montgomery County, PA (19.6%)

San Francisco (-25.7%)

Indianapolis, IN (-12.8%)

Atlanta (-11.5%)

Warren, MI (-6.4%)

Newark (-3.9%)

Declined in 10 metros

Refer to our metrics definition page for explanations of all the metrics used in this report.

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