New listings of U.
S. homes for sale increased by 0.5% year-over-year during the four weeks ending March 8, marking the first rise since November, according to a recent report from real estate brokerage Redfin. This modest improvement may indicate a growing sense of optimism among home sellers, potentially spurred by a dip in mortgage rates to approximately 6%.
This shift has contributed to a 3.2% year-over-year decrease in the median monthly housing payment. Redfin agents nationwide suggest that 6% represents a psychological threshold for many buyers who have been awaiting a more favorable market entry point. However, the daily average mortgage rate did see a slight increase to 6.19% this week, influenced by geopolitical events in the Middle East.
The increase in new listings is partly attributed to a record rate of homeowners re-listing properties that were previously taken off the market in 2025, signaling their belief in an improving market this year. Other indicators also point to a gradual market recovery as spring approaches: pending home sales are down 1.3% year-over-year, which is the smallest decline observed in over a month, and mortgage-purchase applications have risen by 8% week-over-week.
Despite these positive signs, a notable number of potential buyers remain on the sidelines, largely due to ongoing high costs and economic uncertainties. A smaller segment has delayed purchasing plans in response to the Iran war. Currently, the market features significantly more home sellers than buyers, providing buyers with negotiating power. Nevertheless, lower housing payments and a broader selection of homes could attract more buyers, potentially leading to a gradual shift in power back towards sellers.
Justin Gomez, a Redfin Premier agent in Omaha, NE, commented on the market sentiment, stating, “Heading into spring and summer, the vibe is that the market will shift from the slowness we’ve seen over the last few years.” He added, “I’ve already seen a few bidding wars on lower-priced homes, and that may become more common if mortgage rates stay closer to 6% than 7%. We also have a fairly large pool of homes for sale, with a lot of new construction homes sitting on the market. If the spring does bring more buyers off the sidelines, those will go fast and maybe for over asking price.”
Key housing market data for the four weeks ending March 8, 2025, shows the median sale price at $385,125, up 1.2% year-over-year, and the median asking price at $417,475, an increase of 2%. The median monthly mortgage payment stood at $2,611 with a 6% mortgage rate. Pending sales were 78,811, while active listings totaled 1,023,623, a decrease of 2.2% year-over-year. The market’s months of supply was 4.6, an increase of 0.2 points. Homes spent a median of 63 days on the market, eight days longer than the previous year, and 21.1% of homes sold above list price. The average sale-to-list price ratio was 98.1%.
In terms of demand indicators, the daily average 30-year fixed mortgage rate was 6.19% on March 11, down from 6.72% year-over-year. The weekly average 30-year fixed mortgage rate for the week ending March 5 was 6%, compared to 6.63% a year prior. Mortgage-purchase applications increased 8% week-over-week and 11% year-over-year. The Redfin Homebuyer Demand Index rose 5% month-over-month, though it was down 16% year-over-year. Google searches for “homes for sale” saw a 16% increase month-over-month and 26% year-over-year, while touring activity was up 18% from the start of the year.
At the metro level, San Francisco, CA (9.3%), Newark, NJ (8.9%), and Philadelphia (8.2%) experienced the largest year-over-year increases in median sale price. Conversely, Dallas (-5.3%), Oakland, CA (-4.6%), and Denver (-3.5%) saw the biggest decreases.
Redfin, a technology-driven real estate company and part of Rocket Companies, aims to provide an integrated homeownership platform. The company’s services include on-demand tours and facilitating home loan applications through Rocket Mortgage.
