When
compared
to
the
same
month
a
year
ago,
24.6%
more
homes
were
actively
listed
for
sale
on
a
given
day
in
January,
following
a
15-month
trend
of
higher
annualized

inventory
levels.
It’s
also
higher
than
December’s
annualized
increase
of
22%
more
available
listings
on
a
daily
basis.

In
total,
inventory
levels
were
10.8%
higher
than
in
January
2024,
good
for
the
highest
level
for
any
January
since
2021.
Despite
this
growth,
inventory
levels
are
still
below
levels
in
2017
and
2019,
Realtor.com
said.

Home
buyers
and
sellers
are
ending
a
longstanding
stalemate,
Realtor.com
chief
economist
Danielle
Hale
shared
in
the
report.
She
also
highlighted
lower
mortgage
rates
and
a
decline
in
lock-in
effect
as
key
drivers
behind
more
listings
in
January.

“The
shift
in
seller
activity
could
mark
a
turning
point
in
the
high
mortgage
rate-induced
standoff
between
buyers
and
sellers,” Hale
said.
“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.”

Pending
listings
also
continued
their

return
to
form
in
January,
increasing
1.8%
year
over
year.
This
is
much
lower
than
the
7.4%
7.4%
annualized
increase
in
December,
but
higher
mortgage
rates
in
January
are
a
likely
reason
for
this.
The
total
number
of
homes
for
sale
—
including
pending
sales
—
have
increased
17.1%
over
the
past
year,
a
continuation
of
a
14-month
trend.

All
four
regions
of
the
country
saw
growth
in
January.
The
West
saw
31%
more
listings,
followed
by
the
South
(+27%),
Midwest
(+16.8%)
and
the
Northeast
(+7.8%).

At
the
metro
level,
the
most
inventory
growth
was
in

Denver
(+54.8%),

Las
Vegas
(+49.4%)
and
Tucson,
Arizona
(+45%).
Only
14
metro
areas
surpassed
pre-pandemic
inventory
levels.
The
leading
areas
—
Denver,
San
Antonio
and
Dallas
—
were
in
the
South
and
West
regions.

Some
may
wonder
how
long
these
listings
are
staying
on
the
market.
That
angle
tells
a
different
story,
with
homes
spending
an
average
of
73
days
on
the
market.
By
comparison,
that’s
five
more
days
than
in
January
2024
and
three
more
than
in
December
2024.
Realtor.com
said
this
represents
the
slowest
January
since
2020,
following
a
10-month
trend
of
slower
times
on
market.

Listings
in
the
South
and
West
spent
five
to
six
more
days
on
the
market
compared
to
a
year
ago.
Midwest
listings
bucked
the
trend,
leaving
the
market
two
days
faster
than
a
year
ago.
Meanwhile,
time
on
market
in
the
Northeast
remained
unchanged.

Locally,
43
of
the
top
50
metro
areas
posted
higher
time-on-market
ratings
for
listings,
led
by
Nashville
(+19
days)
and
Orlando
(+15
days).

Price
cuts
could
be
the
answer
for
shortening
the
time
on
market,
according
to
Realtor.com.
More
than
15%
of
listings
had
price
cuts
this
month,
which
was
slightly
higher
than
last
year.
To
drive
home
that
point,
Realtor.com
noted
that
the
median
price
of
homes
this
month
($400,500)
was
2.2%
lower
than
a
year
ago.
This
could
mean
that
sellers
are
willing
to
compromise
if
it
means
getting
their
home
sold.

As
the
year
continues,
Realtor.com
said
that
a
declining
lock-in
effect
could
bring
more
listings
to
the
market.
But
only
time
will
tell
if
that
rings
true.