Housing supply is ticking up nationwide, but many homes are lingering on the market rather than attracting buyers.
Key Facts:
- Redfin says the number of homes for sale in November rose 12.1% year over year, hitting a four-year high.
- Over half of all listings (54.5%) had been on the market for more than 60 days.
- Miami (63.8%) and Austin (62.4%) reported especially large shares of older listings.
- The typical home that did sell took 43 days to go under contract, the slowest November pace since 2019.
- The share of first-time homebuyers fell from 32% in 2023 to 24% in 2024.
The Rest of The Story:
According to a new report, homeowners have been hesitant to drop prices, causing many properties to stay on the market longer. This has created a buildup of unsold inventory that, on paper, looks like more supply, but does not actually help buyers seeking affordable homes.
Meme Loggins, a Redfin Premier agent in Portland, Oregon, explained that sellers who insist on high asking prices often see their listings languish for over 60 days. The few homes that are priced competitively and well-maintained still sell quickly.
Commentary:
The real estate crunch we see today is deeply rooted in events during the pandemic. A surge of money entered the system coupled with remote work, encouraged people to move anywhere and snap up homes. That sudden demand drove home values to record highs.
Next came rising interest rates meant to tame inflation, which is also linked to the rush of cash. These higher rates have made mortgages more expensive. For many, especially first-time buyers, purchasing a home now feels unattainable.
It is a tough break for anyone who dreamed of owning property but finds themselves priced out or unable to meet steep mortgage costs.
The Bottom Line:
Home listings are growing, but they are not necessarily selling. The combination of high prices and rising mortgage rates makes it challenging for most families to buy their first home.
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