Home sales fell 35.1% in November from the year before, the largest decline in Redfin’s records dating back to 2012.

Home price growth momentum also faltered, with the median U.S. home sale price increasing a mere 2.6%. This is the smallest amount since May 2020, the start of the pandemic.

Elevated housing costs in November kept buyers and sellers on the sidelines. There were 28.4% fewer listings in November from the year before. However, due to homes remaining on the market for longer, the total number of homes for sale was up 4.6% from a year before.

In recent weeks, mortgages have begun to creep back downward, causing a slight downtick in the cancellation of home-purchase agreements.

“The worst of inflation is likely in the rearview mirror,” says Chen Zhao, economics research chief at Redfin. “We do anticipate that mortgage rates will decline slightly further in 2023 as the Fed’s actions continue to bring inflation down, which should ultimately bring more homebuyers back to the market.

“Still, we have a ways to go until we reach recovery mode, and we may see sales continue to ebb in the short term,” Zhao added.