If you’ve been trying to sell your home and feeling like you’re in a rut, you’re not alone. Recent reports from Redfin suggest that over 60% of home listings are considered “stale,” staying on the market for at least a month.
This trend has been steadily increasing, with a jump from 50% in 2012 to nearly 62% in May 2024. In the same month, 40% of homes had been sitting idle for two months or more.
This surge in stagnant listings is partly due to a rise in housing inventory across the U.S., particularly in states like Texas and Florida. However, high mortgage rates and inflated home prices are also deterring potential buyers.
As of June 6, the 30-year fixed mortgage rate was 6.99%, while the 15-year rate stood at 6.29%. The recent decision by the Federal Reserve to maintain interest rates is not good news for those hoping for lower mortgage rates.
While housing inventory has expanded, it remains historically low due to underbuilding after the 2007-2008 crash. The surplus of less attractive listings is a result of the sluggish market due to high home costs.
Certain areas, like Dallas, have seen a significant increase in the share of stale listings. In May, 60% of homes were unsold after 30 days, compared to 53% a year prior. Fort Lauderdale, Tampa, Jacksonville, and Fort Worth are among the top cities with high percentages of unsold listings.
Interestingly, these areas are also hotspots for home construction. Redfin notes that buyers are increasingly concerned about natural disasters in these regions, with NOAA forecasting a potentially active hurricane season.