Longer listing times suggest persistent challenges for sellers in today's market
Nearly half of all US homes listed for sale are sitting on the market for more than 60 days, the highest level for an August since 2019, according to a recent report from Redfin.
The report showed that 48% of homes remained unsold after two months, up from 43.2% a year ago, marking the fifth consecutive month that the share of unsold homes over 60 days has increased year-over-year.
“We usually see home sales pick up when mortgage rates fall, but this year we are seeing the opposite—sales are dropping and homes are sitting longer on the market,” said Redfin senior economist Sheharyar Bokhari. “Last week’s big interest rate cut by the Federal Reserve will give buyers a boost in confidence, but it remains to be seen whether sales will speed up in any meaningful way as we move into the slower Fall season.”
The market slowdown is evident, with nearly 70% of homes (68.5%) staying on the market for at least 30 days in August, a rise from 63.9% the previous year. This marks the highest share of month-old listings for any August since before the pandemic in 2019.
Redfin agents noted that for homes to sell quickly, they need to stand out.
“For a home to sell fast, or with multiple bids, it needs to be immaculately presented and have a unique design, or additional features like a pool,” said Andrew Vallejo, a Redfin Premier agent in Austin, Texas. “I had a home receive multiple offers about a month ago—a rarity for us at the moment. It sold quickly and for $25,000 over list price because of how pretty it was—everything was perfectly painted, clean and manicured.”
The speed at which homes sell also varies by region. In Seattle, homes were on the market for a median of just 12 days in August, the fastest among the 50 largest metros Redfin analyzed. Meanwhile, homes in Florida’s major metros, including West Palm Beach, Fort Lauderdale, and Miami, stayed on the market for more than nine weeks. In West Palm Beach, the median time to sell was 79 days, up by 18 days compared to last year.
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Florida’s slower sales pace is partly due to the surge in new homes built during the pandemic to meet the demand from people relocating to the state. With inbound migration slowing down and rising insurance and HOA costs, homes are sitting on the market longer.
“Anyone who has been paying attention to the housing market over the past few years knows that desirable homes sell right away. That’s been true ever since the overall market slowed down after mortgage rates shot up a couple years ago,” Redfin chief economist Daryl Fairweather said in the report. “Now if a home is still on the market after a few weeks, buyers assume there’s something wrong with it. That’s why it’s so important to price your home to move quickly. Buyers see the days on market, and when it starts to tick up, it’s like a scarlet letter.”
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