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US housing market In addition to rising housing costs, the start of the new year has been hit hard by extreme weather – from wildfires in Southern California to freezing cold and snow in the Northeast, Midwest and South.
These factors slowed home tours and a decline in pending sales during the four weeks ending Jan. 12, according to real estate brokerage firm Redfin.
Still, Redfin said it is “still too early in the new year to determine what the 2025 housing market will shape.”
According to Redfin, these were the most expensive homes to sell in 2024
Redfin’s Homebuyer Demand Index, which is a seasonally adjusted measure of tours and requests other shopping Service From Redfin agents, it declined 11% month over month, its lowest level since August.
A for sale sign is displayed outside a home for sale on August 16, 2024 in Los Angeles, California. (Photo by Patrick T. Fallon/AFP) (Photo by Patrick T. Fallon/AFP via Getty Images) / Getty Images)
Pending home sales declined 8.4% year over year, the largest decline since October 2023. New listings marked the biggest annual decline since September 2023, falling 3.6% on an annual basis.
Active listings increased 9.8% year over year, the smallest increase in nearly a year, according to Redfin data.
Meanwhile, average housing payments across the country are also at their highest level in two months. House prices are up 5.8% year on year and average daily mortgage rates also reached their highest level since May last week.
Home buying demand and listings have increased in California, particularly in the Los Angeles metro. Cause it’s wet For the wildfire that broke out earlier this month.
On January 7, 2025, high winds caused the Eaton fire in Pasadena, California, destroying homes. (David McNew/Getty Images/Getty Images)
In turn, Redfin said this is driving demand for purchases and rentals from displaced people. Specifically, Los Angeles pending sales declined 4% year over year during the four-week period ending January 12 and new listings declined 2.5%. Redfin does not believe the decline would have been as large if the wildfires had not started.
Redfin is also projecting to see a bigger decline in the coming weeks.
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“Many Redfin agents are placing an emphasis on helping people find rentals as quickly as possible,” said Susan Brown, Los Angeles-based Redfin Premier agent. “Since rents are rising so rapidly, my advice to people looking for housing is to contact a real estate agent directly for help.”
A “for sale” sign in Crockett, California on June 14, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Cold temperatures and snowfall in other parts of the country are also deterring buyers. According to the agency, this is also delaying homeowners in putting their homes up for sale.
