(NewsNation) — Mortgage rates have come down in recent months, but according to a new report, “extra stale” listings have continued to rise with more homes sitting on the market for longer.
Last month, nearly half (48%) of all homes for sale had been on the market for at least 60 days, a Redfin analysis found. That’s up from 43% a year ago and the highest share for August since 2019.
“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,” Redfin Senior Economist Sheharyar Bokhari said in a statement.
It’s a sign buyers are starting to regain some bargaining power as housing inventory improves and interest rates come down.
Nationally, the typical home was listed for 37 days before going under contract in August — six more than a year earlier. But in some markets, homes are sitting much longer.
Florida has four of the top five metros with the slowest sales. Homes in West Palm Beach, Florida, took the longest to sell, spending a median 79 days on the market before finding a buyer.
Fort Lauderdale (75 days), Jacksonville (65 days) and Miami (65 days) weren’t far behind.
The recent cooldown in the Sunshine State is due to several factors. A surge in new construction has helped boost inventory and ease competition, alleviating supply pressures after Florida became a popular pandemic destination. Demand has also taken a hit amid severe weather concerns, rising insurance costs and climbing HOA fees.
Meanwhile, homes continue to fly off the market in Seattle (12 days), Indianapolis (16 days) and Warren, Michigan (17 days). San Jose (18 days) and Oakland, California (20 days) rounded out the top five major metros with the fastest sales.
Buyers have dealt with a competitive housing market for several years, and that’s changed how they view homes that have been sitting for a while, Redfin Chief Economist Daryl Fairweather noted.
“Now if a home is still on the market after a few weeks, buyers assume there’s something wrong with it,” she said. “That’s why it’s so important to price your home to move quickly.”
Last month, the typical home spent roughly the same amount of time on the market as in August 2019, an indication the uptick in “extra stale” listings is more of a return to normal than a sign of turmoil.
If the Federal Reserve cuts interest rates further, as it’s expected to, mortgage rates may continue to fall — potentially drawing more buyers off the sidelines.
The 10 major metros with the slowest sales, according to Redfin
Median days on the market in August 2024
- West Palm Beach, FL: 79
- Fort Lauderdale, FL: 75
- Jacksonville, FL: 65
- Austin, TX: 65
- Miami, FL: 65
- San Antonio, TX: 57
- Phoenix, AZ: 55
- Nashville, TN: 53
- Pittsburgh, PA: 50
- Chicago, IL: 49
The 10 major metros with the fastest sales, according to Redfin
Median days on the market in August 2024
- Seattle, WA: 12
- Indianapolis, IN: 16
- Warren, MI: 17
- San Jose, CA: 18
- Oakland, CA: 20
- Detroit, MI: 20
- Boston, MA: 21
- St. Louis, MO: 21
- Cleveland, OH: 21
- Newark, NJ: 21
