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The number of homes actively for sale during January increased by 7.9% from one year earlier, according to data from Realtor.com, which added median listing prices recorded a growth of 1.4% compared to the same time last year.

In January, more than half of the 50 metros analyzed by Realtor.com recorded new listings increase over the previous year, with some of the largest growth happening in Denver (+21.3%), Seattle (+20.6%) and Miami (+20.2%). At the other end of the spectrum, metros recording listing declines included Chicago (-16.4%), New Orleans (-14.7%), and Philadelphia (-12.9%).

Compared to January 2023, the typical home spent four less days on the market. In some spots, the time spent on the market decreased even more with Las Vegas (-19 days), Phoenix (-14 days) and San Francisco (-13 days) seeing the most decline.

The cost of financing the typical home, assuming a 20% down payment, increased by roughly $108 (5.4%) per month in January compared to one year earlier. With this increase, the required household income to purchase the median-priced home went up by $4,300 to $84,000, before accounting for the cost of tax and insurance. However, as interest rates are falling and listing prices growth has remained muted, the increase in the monthly cost to purchase a home has slowed, down from 6.1% year-over-year last month to January’s increase of 5.4%.

“We are seeing increases in inventory and, importantly, gains in newly listed homes for sale indicating sellers are more ready to make moves,” said Realtor.com Chief Economist Danielle Hale. “Time on market fell, signaling that buyers are ready to make offers on these new options. While the drop in mortgage rates since last fall has helped boost buyer purchasing power, rates may not fall as quickly in the months ahead, and the anticipated improvement in affordability may be more uneven.”