Home listings increased in January, giving buyers more choices

The U.S. housing market began the year with slowing sales but a rising inventory - Image (c) ConsumerAffairs

Prices also dipped slightly

The U.S. housing market began the year with slowing sales but a rising inventory. The number of newly listed homes surged by 37.5% month-over-month in January, according to the latest Realtor.com Monthly Housing Report. 

The increase in seller activity occurred despite recent hikes in mortgage rates, suggesting a potential shift in the standoff between buyers and sellers.

Among the top 50 metropolitan areas, Sacramento, Phoenix, and Seattle led the way with significant increases in newly listed homes, recording jumps of 31.7%, 27.3%, and 24.7% respectively compared to the same period last year.

"The shift in seller activity could mark a turning point in the high mortgage rate-induced standoff between buyers and sellers,” Danielle Hale, chief economist at Realtor.com, said in a press release. 

“The uptick is likely due to some residual benefit from fall's lower mortgage rates, which could fade. But drivers such as the need for families to adapt to life changes and the easing of the lock-in effect could bring more movement from sellers by year's end."

National housing metrics for January 2025

The national housing market saw active listings increase by 25.3% compared to January 2024, while the median listing price decreased by 2.2% to $400,500. Homes spent an average of 73 days on the market, five days longer than the previous year.

The share of listings with price reductions also grew, with 15.6% of sellers cutting prices in January, up from 14.7% in January 2024. Florida cities such as Jacksonville, Tampa, and Orlando were among the top markets with the highest share of price reductions.

The South and West regions are closing the inventory gap more effectively than the Midwest and Northeast. The West saw a 31.0% increase in listings, while the South experienced a 27.2% growth. In contrast, the Midwest and Northeast lagged with increases of 16.8% and 7.8%, respectively.

Denver, Las Vegas, and Tucson were the top metros in terms of inventory growth, with increases of 54.8%, 49.4%, and 45.0% year-over-year.