In November, the number of homes lingering on the market reached its highest level since 2019, with over half of the listings taking 60 days or more to find buyers. This surge in stagnancy significantly contributed to a 12% rise in housing supply, indicating a complex narrative within the U.S. housing market.
November saw active home listings climb to levels not observed since 2020, increasing by 0.5% month over month and 12.1% year over year. The apparent growth in housing supply, however, is largely attributed to the accumulation of unsold properties, many of which are perceived as overpriced by potential buyers.
An analysis revealed that 54.5% of home listings in November extended beyond 60 days without securing a contract, marking the slowest pace for November since 2019. Real estate expert Meme Loggins notes that properties considered stale or overpriced fail to attract buyers. She points out that homes priced appropriately and in good condition typically sell quickly, within three to five days. Conversely, those deemed overpriced can remain unsold for over three months.
In Portland, around 58.7% of November’s listings experienced prolonged market periods, ranking as the seventh highest among major U.S. metropolitan areas. Miami leads with 63.8% of listings enduring similar delays. Florida and Texas, regions actively involved in new home constructions, see a rise in inventory and unsold homes. This is further complicated by heightened HOA fees, insurance costs, and the aftermath of destructive natural events, deterring potential buyers in Florida.
Conversely, cities like Providence reported the lowest share of prolonged listings, with only 38.2% of November’s listings facing extended market exposure. The reduction in stale inventories was also notable in places like Philadelphia, Chicago, and San Francisco, where the percentage of unsold homes decreased from the previous year.
The current state of the housing market, with its rising supply yet stagnant sales, reflects underlying issues of pricing and market desirability. While new constructions continue, the challenge lies in aligning market prices with buyer expectations, highlighting a critical area for sellers to address.
Source: Redfin
