New Listings Hit Highest Level in Nearly 3 Years

Written by Posted On Thursday, 22 May 2025 05:28

Would-be buyers are sidelined by record-high housing costs and economic instability, allowing inventory to pile up

New listings of U.S. homes for sale rose 8.4% year over year to their highest level in nearly three years during the four weeks ending May 18. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

But buyers aren’t biting: pending sales fell 2.2%, dropping to their lowest level for this time of year in Redfin’s records, which date back to 2015, and mortgage purchase applications are down 5% week over week.

The uptick in listings and decline in sales are causing inventory to pile up. The total number of homes for sale rose 14.3% year over year to their highest level in nearly five years.

Fewer Americans are buying homes because it’s more expensive to buy than it’s ever been, and economic unease is making people nervous about making such a big purchase. The median monthly housing payment hit an all-time high of $2,882, with a 1.7% year-over-year increase in home prices and near-7% mortgage rates contributing to high costs. Many of the people who can afford to buy are hesitant to do so, with consumer sentiment sitting at a near-record low amid fears of a trade war and potential recession.

On the supply side, high costs and the uncertain economy are also contributing to the increase in listings. Some sellers are listing because they want to save money by moving to a smaller home or a less expensive area. Some are listing because they believe home prices will start declining soon, and some see the surge in inventory and want to get their home on the market before there’s more competition. Additionally, there are the people who need to sell, regardless of timing, due to a major event like divorce or a job relocation.

“Clients are asking me to call them when we’re at a tipping point, because they want to sell before prices drop,” said Hazel Shakur, a Redfin Premier agent in Maryland. “My advice to homeowners: if you’re planning to sell in the next year or two, do it now because we don’t know what’s going to happen with home values or the larger economy. Buyers should know that because of the uncertainty in the air, they may be able to get a home for under asking price, or get concessions from the seller.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.05% (May 21)

Up from 6.92% one week earlier

Down from 7.09%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.81% (week ending May 15)

Up from 6.76% one week earlier

Down from 7.02%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

Down 5% from a week earlier (as of week ending May 16)

Up 13%

Mortgage Bankers Association

Redfin Homebuyer Demand Index

Up 4% from a month earlier (as of week ending May 18)

Down 1%

Touring activity

Up 13% from the start of the year (as of May 19)

At this time last year, it was up 23% from the start of 2024

ShowingTime, a home touring technology company

Google searches for “home for sale”

Up 6% from a month earlier (as of May 19)

Up 6%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending May 18, 2025

Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

Four weeks ending May 18, 2025

Year-over-year change

Notes

Median sale price

$391,725

1.7%

Median asking price

$431,450

6%

Median monthly mortgage payment

$2,882 at a 6.81% mortgage rate

4.9%

Record high

Pending sales

89,277

-2.2%

New listings

110,637

8.4%

Active listings

1,106,575

14.3%

Smallest increase in over a year

Months of supply

3.9

+0.6 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

39.7%

Down from 44%

Median days on market

37

+4 days

Share of homes sold above list price

28.2%

Down from 31%

Average sale-to-list price ratio

99.1%

Down from 99.4%

Metro-level highlights: Four weeks ending May 18, 2025

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Philadelphia (13.8%)

Miami (10.2%)

Detroit (9.5%)

Pittsburgh (9.2%)

Providence, RI (8.8%)

Oakland, CA (-5%)

Dallas (-3.4%)

Austin, TX (-3.1%)

Tampa, FL (-2.4%)

Houston (-1.2%)

Declined in 10 metros

Pending sales

Cincinnati (5.6%)

Indianapolis (4.7%)

Milwaukee (3.1%)

Virginia Beach, VA (3%)

Chicago (2.7%)

Miami (-18%)

Fort Lauderdale, FL (-17.1%)

Las Vegas (-12.6%)

San Jose, CA (-11.3%)

Detroit (-11.1%)

Increased in 12 metros

New listings

Washington, D.C. (20.1%)

Houston (17%)

Boston (15.4%)

Baltimore (15%)

Seattle (14.5%)

Orlando (-8.4%)

Fort Lauderdale, FL (-7.5%)

San Antonio (-6.9%)

San Jose, CA (-6.4%)

Tampa, FL (-4.2%)

West Palm Beach, FL (-4%)

Declined in 6 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-new-listings-soar

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Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent. You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

https://www.redfin.com

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