Redfin (NASDAQ: RDFN) reported a 12.1% year-over-year increase in pending home sales during the four-week period ending November 24, marking the largest rise since May 2021. The uptick in home sales is attributed to a surge in early-stage homebuying activities, particularly home tours, which spiked after the presidential election. Additionally, the comparison to a slower period in 2023, when Thanksgiving fell during the same time, has contributed to the notable increase.
However, Redfin’s analysts caution that the recent surge in pending sales may reflect a short-term spike tied to the holiday season rather than a sustainable trend in the housing market. The true impact will become clearer in the coming weeks.
Despite the seasonal increase in homebuying demand, Redfin’s Homebuyer Demand Index—which tracks tours and homebuying activities—saw a decline of 5% from a month earlier during the week ending November 24. While this index has seen significant gains year-over-year, it is important to note that it fell to its lowest point in over two months, following two weeks of substantial activity that pushed the index to its highest level in nearly 18 months.
On the supply side, new listings rose by 10.6% year-over-year, marking the biggest increase since April. Similar to pending sales, this surge is partly due to the Thanksgiving comparison, and it remains to be seen whether the rise in new listings will be sustained in the coming months.
Key housing indicators for the period ending November 24 show mixed signals:
- Mortgage Purchase Applications: These rose by 12% from the previous week, though early-stage homebuying signals, like tours, have tapered off. Despite this, applications are up 52% from the previous year.
- Mortgage Rates: The weekly average 30-year fixed mortgage rate stood at 6.81% for the week ending November 27, the highest since July. However, it was still lower than the previous week’s rate of 7.29%.
- Median Sale Price: The median sale price of homes reached $386,625, marking a 7% increase year-over-year, the largest since September 2022.
- Pending Sales: The total number of pending sales was 71,773, reflecting a 12.1% year-over-year rise.
- Active Listings: Active listings increased by 12.4%, but this represents the smallest growth since March.
The housing market is experiencing a period of volatility, with various regions seeing differing trends. Some cities, such as Philadelphia and Newark, have seen significant year-over-year increases in median sale prices, with increases ranging from 13% to 22%. Conversely, markets like Miami and West Palm Beach have seen declines in pending sales, with Miami reporting a decrease of 6.3%.
Redfin’s report underscores the shifting dynamics of the U.S. housing market, which is grappling with higher mortgage rates and changing buyer behavior. While the recent rise in pending sales and new listings signals potential strength, there is still uncertainty about whether these trends will hold in the coming months.
For more detailed information, including regional variations and housing data trends, Redfin’s full report is available on their website.
About Redfin
Redfin is a technology-driven real estate company offering brokerage, lending, rentals, and other real estate services. Redfin’s platform allows customers to save on fees while connecting with top agents, and it provides a range of home-buying and selling services, including on-demand tours and renovation assistance. The company operates in over 100 markets across the U.S. and Canada.
