Home Tours Are On the Rise — But Buyers Aren’t Making Offers. What’s Going On?

Why Are Buyers Hesitating?

Mortgage rates remain a significant obstacle. As we move into 2025, the average 30-year fixed-rate mortgage has climbed above 7%, according to Redfin. This increase has led to a 3.1% year-over-year drop in pending home sales.

However, despite higher rates, buyer interest is still growing. Redfin’s Homebuyer Demand Index, which tracks activity such as home tours and agent inquiries, rose by 2% in the first week of January. This shows that buyers are actively searching but not committing just yet.

Market Trends: Affordability & Pricing

Affordability is a key factor affecting buyer decisions. Nationwide, median asking prices increased 4.5% year-over-year to $374,975, while the median sale price rose 5.5% to $375,998. Higher mortgage rates have pushed the median monthly mortgage payment up 6.7% to $2,525.

Some good news: Realtor.com reports that list prices have dropped in over half of the 50 largest U.S. metros. For instance, San Francisco’s median list price fell 10.9%, offering potential affordability opportunities in high-priced markets.

Florida Market Update

Post-pandemic, Florida’s real estate market is cooling, with inventory levels returning to pre-pandemic norms. Miami’s median list price dropped nearly 10% to $522,500, largely due to a surge in new construction.

• Miami: Inventory levels increasing, more affordable options emerging.
• Orlando & Jacksonville: Seeing similar trends with more new construction.
• Boca Raton: Single-family home inventory dropped, supporting prices. However, condo inventory is up to a 6.7-month supply, signaling a potential buyer’s market.

Regional Market Performance

• Midwest: Leading in price growth with Milwaukee (+19.5%), Cleveland (+17.1%), and Warren, MI (+13.6%).
• West: Pending home sales rising in Anaheim, CA (+10%), San Jose (+7%), and Portland, OR (+3.1%).
• East: Seller activity increasing in Washington D.C. (+9.4%), Virginia Beach (+7.2%), and Miami (+6.6%).

What’s Next for Buyers and Sellers?

With uncertainty still in the air, buyers are cautious about overextending financially or locking in high mortgage rates. Some are waiting for price drops, while others fear missing out as competition for desirable homes remains high.

Looking ahead:

• Mortgage rates: Realtor.com forecasts an average of 6.3% in 2025, which could provide some relief.
• Inventory: Active listings increased 22% year-over-year, helping to balance supply and demand.
• Affordability challenges: Rising home prices and mortgage rates will continue to pressure buyers into making strategic decisions.

Conclusion

The real estate market is at a crossroads. Buyers are actively touring homes but remain hesitant due to high mortgage rates and affordability concerns. However, competition is still fierce, and in some markets, waiting may not be the best strategy.

For buyers, preparation is key—understand your financial limits, stay informed on local trends, and be ready to act. For sellers, pricing competitively and addressing buyer concerns will be essential to attracting serious offers.

FAQs

1. Why are home tours increasing but sales not rising?

Many buyers are interested but hesitant due to high mortgage rates, affordability concerns, and market uncertainty.

2. Will mortgage rates decrease in 2025?

Experts predict mortgage rates could average around 6.3%, potentially making home purchases more affordable.

3. What cities have the highest price growth?

The Midwest is leading with cities like Milwaukee (+19.5%) and Cleveland (+17.1%).

4. Is now a good time to buy in Florida?

Florida’s market is cooling, and inventory is rising in many cities, creating opportunities for buyers.

5. How can buyers stay competitive?

Buyers can increase competitiveness by securing pre-approvals, making strong offers, and being flexible with contingencies.