Sellers Are Finally Listing Their Homes Again, Redfin Reports

Previously hesitant home sellers are returning to the market, listing their properties to take advantage of high home prices and increased buyer activity.

Although winter typically means reduced housing-market activity, homes are being listed at the highest rate since June, according to a report Thursday by residential real estate services company Redfin based on data from the month ended Dec. 15.

If this trend continues, the longstanding housing shortage caused by high building costs and the “lock-in effect” might ease.

Why Are Sellers Listing Their Homes?

Many sellers are jumping back into the market to take advantage of high prices, Redfin said. Currently, the company said, the median U.S. home sale price is up 6% compared with the same time last year, the second-largest increase since October 2022.

In addition, homeowners were more confident about listing their homes once the presidential election was finalized in November. Many consumers held off on making big financial decisions until after the election, after which consumer confidence rose to a 16-month high.

Redfin’s Homebuyer Demand Index, a seasonally adjusted measure of tours and homebuying services from its agents, is up 9% from the previous year and at its highest level since August 2023, indicating interest on the other side of the deal, too.

High mortgage rates have kept buyers on the sidelines, as they have been less willing to swap the ultra-low rates they locked in during the pandemic for those now offered. Although mortgage rates are still higher than a few years ago, the weekly average mortgage rate recently declined for three weeks in a row, according to Redfin.

This is bringing back hesitant buyers. Redfin reports that mortgage-purchase applications are up 18%, and pending home sales are 4.1% higher than last month.

“Buyers are coming out of the woodwork because they’ve accepted that rates in the 6% to 7% range are the new normal, and they know that if they wait to buy, mortgage rates will probably stay the same but prices will be higher,”  David Palmer, a Redfin Premier agent in the Seattle area, said.