'Homes Are Lingering': Redfin Reports U.S. Housing Supply Up 12% As 2024 Ends With 954,703 Active Listings

U.S. housing market inventory rose 12% year-over-year to 954,703 active listings in December, while homes took longer to sell amid persistently high mortgage rates, according to new Redfin data.

Properties now spend 45 days on the market, up six days from 2023. The slowdown comes as mortgage rates hover above 7%, compelling many potential buyers to pause their home search.

Pending sales fell 3.4% to 58,267 homes under contract, marking the first decline in three months. New listings held steady at 54,077 units, contributing to four months of housing supply – a level Redfin considers balanced between buyer and seller interests.

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The median sale price rose 6% annually to $383,725, with price gains varying by region. Philadelphia led major markets with a 17.1% price increase, followed by Milwaukee at 14.3% and Cleveland at 13.3%.

Southern markets showed particular weakness in pending sales. San Antonio recorded a 17.4% drop, while Orlando fell 14% and Houston declined 13.7%. In contrast, Detroit saw pending sales climb 7.8%, with Anaheim and Providence rising 6.5% and 5.7%, respectively.

The inventory buildup adds to the growing supply from homebuilders. U.S. Census Bureau data shows 266,000 homes under construction nationally – the highest level since 2008. Spec homes, built without committed buyers, reached 124,000 units.

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Builder inventory concentrates heavily on southern states. Texas, Florida and Tennessee report surging home supplies on builder lots, while the Northeast and Midwest maintain lower inventory levels.

The share of homes selling above list price dropped to 23.3% from 25.1% last year. The average sale-to-list price ratio dipped 0.1 percentage points to 98.4%, indicating reduced buyer competition.

Market dynamics vary by region too. New listings rose 9% in Oakland, 8.9% in Las Vegas and 8.8% in Tampa. Meanwhile, San Antonio saw new listings fall 18.3%, with Nassau County and Boston dropping 13.9% and 12.5%, respectively.

The combination of rising inventory, longer sales times and regional price variations suggests a shifting market dynamic as 2024 ends, with some areas maintaining strength while others show signs of softening. Experts forecast mortgage rates to land around 6% in 2025.

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