Sales of both new homes and existing ones have declined, and it’s affecting how long homes stay on the market.
A new report from Redfin shows that 64.7% of listed homes in June stayed on the market for more than 30 days, which is up from 59.6% a year ago. It’s the largest year-over-year increase for any month in the past year and the highest share for the month of June going back to 2020.
The share of homes on the market for two months or longer is also rising and currently sits at 40%, up from 38.4% last year. It’s the third month in a row this number has grown.
“Overall, the market is fairly stagnant,” Shay Stein, a Las Vegas-area Redfin agent, said in a statement. “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.”
The rising share of stale listings is being driven by the factors that are handcuffing markets nationwide. Mortgage rates remain high and some buyers are holding out until the Federal Reserve cuts benchmark rates, which is expected in September given cooling inflation and a loosening job market.
And stubbornly high home prices aren’t coming down despite a precipitous rise in both new and existing homes that are available for sale.
“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, Stein added. “My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
The rising number of days on market is a trend that is most prevalent in housing markets in Texas and Florida that have cooled after post-pandemic booms. In Dallas, 63% of listed homes have spent a month or more on the market, up from 52% a year ago, which is the largest gain of any U.S. metro area analyzed.
Tampa rose 10 percentage points to 70%, while Fort Lauderdale (77%), Jacksonville (70%) and Orlando (69%) also have high shares of stagnant listings.
