New listings in the U.S. saw their greatest decline in over two years during the four weeks ending Dec. 7, when they fell by 1.7 percent on an annual basis.
As Americans become immersed in the hustle and bustle of the holiday season, homesellers are pulling back from the housing market. They’re also retreating in response to decreased demand from homebuyers, according to new data released by Redfin on Thursday.
Pending home sales also saw their biggest drop in the last 10 months, and are now down 4.1 percent year over year. Homes that sell are likewise sitting on the market for a longer time — 51 days before going under contract, or about one week longer than this time last year.
The holiday slowdown follows an already slower period for real estate, during which buyers and sellers have displayed hesitancy in response to uncertain economic conditions and the rising cost of homeownership.
As of the four weeks ending Dec. 7, the median home-sale price was up 2 percent year over year to $389,123, in part because of lower inventory. Although the weekly average mortgage rate fell to its lowest level of 2025 yet at 6.19 percent, seeing a rate above 6 percent is still giving buyers and sellers pause.
On Wednesday, the Federal Reserve voted to cut short-term interest rates by one-quarter of a percentage point.
“Some would-be sellers are sitting tight because the market is flat,” San Francisco-based Redfin Premier agent Josh Felder said in Redfin’s report. “That’s partly because we’re heading into the normal seasonal slowdown, and partly because prospective sellers and house hunters are watching and waiting to see what’s going to happen next year with rates, the stock market and tariffs. Some homeowners will put their home on the market in 2026 when they have a better idea of how the economy will shape up.”
Mortgage purchase applications during the week ending Dec. 5 were down 2 percent from the previous week, but in a positive sign, were up 19 percent year over year, according to the Mortgage Bankers Association.
By contrast, Redfin’s Homebuyer Demand Index, which measures buyer activities like tours and other Redfin homebuying services, showed demand down 13 percent year over year.
