Pending home sales fell 5.8 percent from a year earlier during the four weeks ending Dec. 14, the biggest decline since the start of 2025, according to a report from Redfin.
On a metro level, pending sales declined in all but six of the 50 most populous metro areas, with the biggest drops in San Jose, Calif. (-35.1 percent year-over-year), Houston (-20.9 percent), and Oakland, CA (-17.6 percent). The metros with the highest year-over-year increases in pending sales were: West Palm Beach, Fla. (+10.7 percent); Virginia Beach, Va. (+6.5 percent); Miami (+6.4 percent); Boston (+5 percent); Pittsburgh (+1.7 percent); and Phoenix (0.7 percent).
The typical home that does sell is taking 52 days to go under contract, about a week longer than last year.
House hunters are hesitant this holiday season because mortgage rates are sitting above 6 percent, and home-sale prices are rising, according to Redfin. Many prospective buyers are waiting for clearer signals on the economy before they make a major purchase; some are concerned about job security amid signals of weakness in the labor market. Sales increased around this time last year after the uncertainty leading up to the 2024 presidential election had passed.
Slow homebuying demand is pushing would-be sellers to the sidelines, too, according to Redfin. New listings are down 3.1 percent year-over-year, the biggest decline in more than two years. The total number of homes for sale is up 4.2 percent, the smallest increase since the start of 2024. Many prospective sellers are reluctant to list their home while the market is tilting toward buyers, with some waiting until the new year to see if demand improves.
“Mortgage rates are buyers’ biggest concern,” Tracy Edwards, a Redfin Premier agent in Raleigh, N.C., said in a release. “They want to make sure they’re not paying too much every month. My advice to sellers is to carefully consider the buyer’s perspective: If a buyer is taking on a high monthly payment, they want the house to be near perfect and the sale price to be fair. Be open to negotiations around repairs and seller concessions, and be realistic about the asking price. It’s better to sell a home quickly than let it linger on the market.”