Home sales hit by severe winter weather, says Redfin

Severe winter weather is hampering home sales across the country, according to a Thursday report from a real estate company. red fin.

The median home sales price in the United States has risen steadily, rising about 5% in the first four weeks of January, along with sales prices, Redfin reported. While low inventory (down 4% year over year) and increased purchasing power have contributed to high prices, Redfin said winter weather has also played a role in weak sales.

Pending home sales are down more than 8% year over year, which Redfin reported as the biggest drop in four months. As potential homebuyers in areas facing severe winter weather stay home, that number has continued to rise.

The winter season has been plagued by arctic freezes, dangerous snow and ice storms across the country, and even heavy rain in drought-stricken California. The Midwest experienced near-record lows and remained stable with below-freezing temperatures.

“Real estate is usually slow in the Midwest during the winter, but this year it is even slower than usual because the weather has been so extreme,” Redfin agent Christine Kooiker of Michigan said in a statement. “Casual house hunters are staying home to avoid the roads, but inventory is low enough that serious buyers will find a way to view desirable homes. I also think we'll be busier as we get closer to spring “.

Realtors in warmer climates reported more active buyers and sellers, even with mortgage rates stable in the high 6% range, Redfin added.

During the first month of 2024, the median home sale price was around $360,000, according to Redfin. Metro areas with the largest year-over-year price increases included Anaheim, California, which saw a 13.6% increase; New Brunswick, New Jersey, with 13.5%; and Miami, Florida, with 13.3%.

Home sales in December fell to close the worst year since 1995, according to the National Association of Realtors.