Redfin Reports Pending Home Sales Fall 6%, the Biggest Drop in Nearly a Year

House hunters are retreating amid high housing costs and a seasonal slowdown, leading prospective sellers to pull back, too

U.S. pending home sales fell 5.8% from a year earlier during the four weeks ending December 14, the biggest decline since the start of 2025. That's according to a new report from Redfin, the real estate brokerage powered by Rocket.

On a metro level, pending sales declined in all but six of the 50 most populous U.S. metro areas, with the biggest drops in San Jose, CA (-35.1% year over year), Houston (-20.9%), and Oakland, CA (-17.6%).

The typical U.S. home that does sell is taking 52 days to go under contract, about a week longer than last year.

House hunters are hesitant this holiday season because mortgage rates are stubbornly sitting above 6%, and home-sale prices are rising, putting homes out of reach for many would-be buyers. Additionally, many prospective buyers are waiting for clearer signals on the economy before they make a major purchase; some are concerned about job security amid signals of weakness in the labor market. Another reason pending sales are declining year over year: Sales increased around this time last year after the uncertainty leading up to the 2024 presidential election had passed.

Slow homebuying demand is pushing would-be sellers to the sidelines, too. New listings are down 3.1% year over year, the biggest decline in more than two years. The total number of homes for sale is up just 4.2%, the smallest increase since the start of 2024. Many prospective sellers are reluctant to list their home while the market is tilting toward buyers, with some waiting until the new year to see if demand improves.

"Mortgage rates are buyers' biggest concern. They want to make sure they're not paying too much every month," said Tracy Edwards, a Redfin Premier agent in Raleigh, NC. "My advice to sellers is to carefully consider the buyer's perspective: If a buyer is taking on a high monthly payment, they want the house to be near perfect and the sale price to be fair. Be open to negotiations around repairs and seller concessions, and be realistic about the asking price. It's better to sell a home quickly than let it linger on the market."

Please note that the next weekly housing market report will be published on Thursday, January 8, 2026; there won't be reports on Thursday, December 25 or Thursday, January 1. Please visit Redfin's Data Center for housing market data. Happy holidays!

For Redfin economists' takes on the housing market, please visit Redfin's "From Our Economists" page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-pending-sales-fall-holiday

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE:RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251218403269/en/

Contact Redfin Journalist Services:

Tana Kelley

[email protected]