Redfin Reports 65% of Home Listings Have Been Sitting on the Market Longer Than a Month, Up From 60% a Year Ago
More listings are growing stale because high housing costs are dampening demand, while the supply of homes for sale is growing
SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Nearly two-thirds (64.7%) of homes that were on the market in June had been listed for at least 30 days without going under contract, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s up from 59.6% a year earlier, marking the biggest annual increase in a year, and the highest share of any June since 2020.
June was the fourth straight month in which the portion of homes sitting on the market for at least one month ticked up on a year-over-year basis. Less-desirable listings are sitting on the market, causing unsold inventory to pile up.
More homes are sitting on the market without finding a buyer because record high home prices and elevated mortgage rates are giving buyers cold feet. And while demand is slow, supply is relatively high. The total number of homes for sale posted its biggest year-over-year gain on record in June because even though new listings are losing steam, many listings are sitting on the market, causing inventory to pile up.
“Overall, the market is fairly stagnant,” said Shay Stein, a Redfin Premier agent in Las Vegas. “There are more listings hitting the market, but a lot of them aren’t in good condition or they’re not in a desirable neighborhood—and sellers are pricing unrealistically high. A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high. My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
Stein noted that move-in ready, relatively affordable homes in popular neighborhoods, along with luxury homes that are priced fairly and don’t need work, are still getting multiple offers and selling quickly.
Stale inventory is growing fastest in Texas and Florida
In Dallas, 63% of listings sat on the market for at least 30 days in June, up from 52% a year earlier, the biggest uptick of all the major U.S. metros. It’s followed by four Florida metros: Tampa, where 70% of homes on the market in June had been listed at least 30 days without going under contract, up from 60%, Fort Lauderdale (77%, up from 68%), Jacksonville (70%, up from 61%) and Orlando (69%, up from 60%).
There are a few reasons Florida and Texas are seeing the biggest increase in unsold inventory. Those states are building more new homes than other parts of the country, adding to overall home supply at a time when demand is fairly slow due to high housing costs, including skyrocketing insurance and HOA prices.
The share of stale home listings increased year over year in 44 of the 50 most populous U.S. metros, and declined in just five—though the decreases were small.
In Nassau County, NY, 57% of listings sat on the market for at least 30 days without going under contract, down from just over 58% a year earlier. Next come New York (70%, down from 72%), Las Vegas (59%, down from 60%), Newark, NJ (53.5%, down from 54.1%) and Warren, MI (50.6%, down from 51%). The share was essentially flat in Philadelphia (66.4%).
Over 40% of U.S. home listings sat on the market for at least 60 days in June
Nationwide, more than two in five (42.6%) homes that were on the market in June had been listed for at least 60 days without going under contract, up from 38.4% a year earlier—the biggest annual increase in nearly a year. June is the third straight month in which the share of homes sitting on the market for at least two months has risen.
To view the full report, including charts, methodology and more metro-level data, please visit: https://www.redfin.com/news/stale-inventory-june-2024
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724266984/en/
Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com
Source: Redfin
Released July 24, 2024
