Homebuyers are grappling with the hottest January on record, as 45% of homes now find a buyer within two weeks on the market. Thirty-five percent go under contract within a week. Both rates are the highest we’ve ever seen for this time of year.
Despite the market’s unprecedented intensity, pending home sales were down 1% during the four weeks ending January 23, the first year-over-year decline since June 2020. The stalling sales are not for a lack of buyers–the Redfin Homebuyer Demand Index was up 9%—but rather a lack of sellers.
“Buyers who have been looking for a home since last year are tired of the search and just want to be done,” said Indianapolis Redfin real estate agent Jill Thompson. “Many sellers seem to be waiting until spring, so the inventory shortage is especially intense right now, leading to a renewed surge of bidding wars and buyers making offers that waive inspection and financing contingencies.”
New listings fell 12%, the largest drop since June 2020, dragging the total number of homes for sale to another new low. Homeowners who are on the market appear to be feeling quite confident; the median asking price climbed 13% to $360,281, just shy of October’s all-time high.
“The early spring is poised to be the hottest housing market on record; we may start to see most homes going under contract within two weeks, but these conditions are likely to be short-lived,” said Redfin Chief Economist Daryl Fairweather. “Now that the stock market is down about 10% from the start of the year and mortgage rates are up nearly half a point, the housing market could lose its luster soon. If that happens, I expect the inventory shortage to finally reach its nadir because overpriced homes will start to pile up on the market.”
Unless otherwise noted, the data in this report covers the four-week period ending January 23. 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.
