New listings fell 12% year over year, sending the total number of homes for sale down 29% to a new all-time low during the four weeks ending January 16. Constricted by supply, pending sales were up just 1%. One ray of hope for buyers is new construction—housing starts and building permits increased to a nine-month high in December.
“2022 started off more competitive than 2021, but mortgage rates have now risen enough that they may become more of a deterrent than a motivator for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “In the next few weeks we may start to see signs that some buyers are backing off. This is the silver lining for the most committed homebuyers who may benefit from less intense competition in this supply-constrained market.”
“There is very little for sale right now, so nearly every new listing that’s priced fairly and is in good condition gets multiple offers,” said Chicago Redfin real estate agent Niko Voutsinas. “Labor and material shortages are limiting the supply of new construction, but also increasing buyers’ appetite for homes that are move-in ready. They don’t want to deal with any hassles of trying to find contractors to make improvements, so they’re willing to pay a premium for homes that don’t need any work.”
Unless otherwise noted, the data in this report covers the four-week period ending January 16. Redfin’s housing market data goes back through 2012.
Refer to our metrics definition page for explanations of all the metrics used in this report.
