High home prices persist during severe winter weather, according to Redfin.

• The decline in pending home sales, which is down 8% year over year, is the largest in the past four months, according to Redfin.
• Severe winter weather has caused potential homebuyers to be sidelined.

Home sales are being hindered across the country due to severe winter weather, according to a Thursday report from a real estate company.

The median U.S. home-sale price has increased by approximately 5% in the first four weeks of January, according to Redfin. Despite low inventory, which has decreased by 4% year over year, and increased purchasing power, Redfin reports that winter weather has slowed down sales.

The decline in pending home sales, which Redfin reported as the biggest in four months, has continued to rise due to severe winter weather keeping potential homebuyers at home.

The country has been hit by an arctic freeze, snow and ice storms, and heavy rain during the winter season. The Midwest recorded near-record lows and subzero temperatures.

This winter, the real estate market in the Midwest is experiencing slower sales due to extreme weather conditions. According to Redfin agent Christine Kooiker from Michigan, casual house hunters are avoiding the roads, but serious buyers are still finding desirable homes. Kooiker predicts that the market will become busier as spring approaches.

Redfin reported that real estate agents from warmer climates observed more active buyers and sellers, despite mortgage rates remaining stable at around 6% in the high range.

In the first month of 2024, the median home sale price was approximately $360,000, according to Redfin. The metros with the largest year-over-year price increases were Anaheim, California, with a 13.6% increase; New Brunswick, New Jersey, with a 13.5% increase; and Miami, Florida, with a 13.3% increase.

The National Association of Realtors reported that home sales in December plummeted, ending the year as the worst since 1995.