New Listings Up 14.8% YOY

New listings made their largest annual gain since May 2021 this February, according to a new report from Redfin.

New listings jumped 3.8% from the month prior on a seasonally adjusted basis and 14.8% year over year, the company reported. 

The total supply of homes for sale also hit the highest level in a year, climbing 0.8% from a month earlier on a seasonally adjusted basis. Texas and Florida experienced a particularly high level of new inventory, which housing analysts attribute in part to new construction in those states.

“February was a mixed bag for the housing market and the economy,” said Redfin Economics Research Lead Chen Zhao. “Housing supply is finally starting to recover in a meaningful way, which is great news for buyers who for months have been competing for a tiny pool of homes for sale. Still, many house hunters are hesitant to pull the trigger because mortgage rates and home prices remain elevated.”

Sellers who may have been “on the fence” in 2023 are now listing their homes and homeowners who have been holding onto their low rates are also now entering the market.

“The housing market is nothing like it was two years ago during the pandemic homebuying frenzy, but it’s better than it was last year. It’s coming back,” said David Palmer, a Redfin Premier real estate agent in Seattle. “Sellers who were on the fence in 2023 are now listing. They’re more used to elevated rates now. There still aren’t enough listings to quench pent-up buyer demand, but it’s getting better.” 

The average 30-year-fixed mortgage rate was 6.78% last month, up from 6.64% in January. The median U.S. home sale price climbed 6.6% year over year - the biggest uptick since September 2022 - to $412,778.