Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 24.6% annually in January, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
Find your lowest rate. Start hereActive listings make huge leap in January
In a promising sign for prospective borrowers, active home listings surged 24.6% annually in January, according to Realtor.com’s Housing Report.
A typical day during the month yielded 829,376 for-sale listings and marked the 15th straight month — and 29th of the past 35 — with year-over-year inventory growth. The listing count fell below December’s 871,509 while overshadowing January 2024’s 665,569. Though active listings are trending upwards, they still lag “normal” prepandemic levels.
“The shift in seller activity could mark a turning point in the high mortgage rate-induced standoff between buyers and sellers. The uptick is likely due to some residual benefit from fall’s lower mortgage rates, which could fade. But drivers such as the need for families to adapt to life changes and the easing of the lock-in effect, could bring more movement from sellers by year’s end,” said Danielle Hale, chief economist at Realtor.com.
Regionally, the West saw active listings grow most at a 31% annual rate. Then came the South at 27.2%, Midwest at 16.8% and Northeast at 7.8%.
Among the 50 largest U.S. housing markets, Denver led the way with a 54.8% year-over-year gain in active listing count. Jumps of 49.4% in Las Vegas, 45% in Tucson, Ariz., 44.5% in San Diego, and 40.8% in Miami, rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in January:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs January 2019 | Median Days on Market | Price– Reduced Share |
| Denver | 54.8% | $569,950 | -5.0% | 16.9% | 72 | 18.0% |
| Las Vegas | 49.4% | $467,500 | 1.6% | 48.4% | 62 | 16.4% |
| Tucson, Ariz. | 45.0% | $391,255 | -1.9% | 40.0% | 64 | 18.4% |
| San Diego | 44.5% | $950,000 | -2.8% | 44.1% | 51 | 12.7% |
| Miami | 40.8% | $520,000 | -7.9% | 33.3% | 79 | 18.8% |
| Jacksonville, Fla. | 40.0% | $385,000 | -4.9% | 29.6% | 74 | 24.3% |
| Orlando, Fla. | 39.4% | $419,900 | -3.5% | 40.0% | 81 | 22.3% |
| Riverside, Calif. | 39.1% | $599,000 | 2.4% | 50.1% | 71 | 14.1% |
| Phoenix | 38.6% | $512,450 | -4.2% | 47.3% | 67 | 25.5% |
| Atlanta | 38.1% | $399,000 | -2.7% | 28.8% | 66 | 18.5% |
| Charlotte, N.C. | 38.0% | $420,000 | 5.0% | 29.2% | 67 | 19.0% |
| Washington, D.C. | 35.9% | $577,000 | -2.9% | 31.5% | 52 | 9.1% |
| Dallas | 35.7% | $415,500 | -3.6% | 22.2% | 69 | 20.9% |
| Sacramento, Calif. | 33.9% | $615,000 | -2.4% | 36.7% | 61 | 13.5% |
| Los Angeles | 32.9% | $1,089,500 | -1.0% | 47.0% | 64 | 8.5% |
On the other end of the spectrum, New York gained the least inventory, inching up 0.3% from January 2024. After the Big Apple, active listings rose 1.8% in Hartford, Conn., 5% in Milwaukee, 7.5% in Boston, and 7.9% in Cleveland.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs January 2019 | Median Days on Market | Price– Reduced Share |
| New York | 0.3% | $750,000 | 0.1% | 37.6% | 77 | 5.8% |
| Hartford, Conn. | 1.8% | $408,375 | 2.1% | 44.6% | 51 | 7.3% |
| Milwaukee | 5.0% | $362,500 | 6.0% | 45.2% | 51 | 12.0% |
| Boston | 7.5% | $799,450 | -1.3% | 49.7% | 56 | 11.2% |
| Cleveland | 7.9% | $234,925 | 11.3% | 34.3% | 65 | 15.2% |
| Chicago | 8.4% | $343,498 | -2.2% | 15.7% | 57 | 11.1% |
| Minneapolis | 8.8% | $425,000 | 0.0% | 11.6% | 59 | 10.6% |
| St. Louis | 10.0% | $274,950 | -0.9% | 37.8% | 62 | 12.3% |
| Detroit | 10.9% | $239,950 | 4.5% | 9.7% | 57 | 11.9% |
| Kansas City, Mo. | 11.0% | $374,950 | -10.3% | 25.1% | 78 | 11.6% |
| Providence, R.I. | 11.1% | $521,175 | 3.2% | 48.9% | 52 | 13.3% |
| Philadelphia | 11.5% | $352,000 | 4.4% | 40.9% | 63 | 12.3% |
| Richmond, Va. | 13.4% | $421,225 | -4.9% | 35.9% | 56 | 11.8% |
| Pittsburgh | 13.9% | $229,700 | -0.1% | 39.3% | 84 | 13.1% |
| Buffalo, N.Y. | 14.7% | $252,450 | 5.2% | 40.3% | 71 | 7.2% |
Additionally, the median time listings spent on the market grew to 73 days, up from 70 days in December and 68 days the year prior. The share of listings with price reductions hit 15.6%, up monthly from 12.9% and annually from 14.7%.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
