Nearly two-thirds (64.7%) of homes on the market in June had been listed for at least 30 days without going under contract, according to a new report from Redfin, a technology-powered real estate brokerage. This marks an increase from 59.6% year-over-year, the largest annual rise in a year and the highest share for any June since 2020.
June marked the fourth consecutive month in which the proportion of homes lingering on the market for at least a month increased year-over-year. This trend is contributing to a glut of unsold inventory.
The growing number of homes sitting on the market without finding buyers is attributed to record-high home prices and elevated mortgage rates in the 7% range, which are deterring potential buyers. Despite the sluggish demand, supply remains relatively high. The total number of homes for sale recorded its largest year-over-year gain in June, as listings remain on the market longer, causing inventory to accumulate.
“Overall, the market is fairly stagnant,” said Shay Stein, a Redfin Premier Agent in Las Vegas. “There are more listings hitting the market, but many are in poor condition or undesirable neighborhoods, and sellers are pricing unrealistically high. Many sellers are willing to let their home sit on the market until they get the price they want, while many buyers are unwilling to pay sky-high prices with high mortgage rates. My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
Stein added that move-in ready, affordable homes in popular neighborhoods, as well as luxury homes priced fairly and in good condition, are still receiving multiple offers and selling quickly.
The rise in stale inventory is most pronounced in Texas and Florida. In Dallas, 63% of listings sat on the market for at least 30 days in June, up from 52% a year earlier, marking the largest increase among major U.S. metros. This was followed by four Florida metros: Tampa (70%, up from 60%), Fort Lauderdale (77%, up from 68%), Jacksonville (70%, up from 61%), and Orlando (69%, up from 60%).
The significant increase in unsold inventory in Florida and Texas is due to these states building more new homes, in part due to the availability of open land, than other parts of the country, adding to the overall supply at a time when demand is slow due to high housing costs, including skyrocketing insurance and HOA prices.
The share of stale home listings increased year-over-year in 44 of the 50 most populous U.S. metros and declined in just five, with the decreases being minor. In Nassau County, NY, 57% of listings sat on the market for at least 30 days without going under contract, down from just over 58% a year earlier. Other metros with slight decreases included New York City (70%, down from 72%), Las Vegas (59%, down from 60%), Newark, NJ (53.5%, down from 54.1%), and Warren, MI (50.6%, down from 51%). The share remained essentially flat in Philadelphia (66.4%).
Nationwide, more than two in five (42.6%) homes on the market in June had been listed for at least 60 days without going under contract, up from 38.4% a year earlier, the largest annual increase in nearly a year. June was the third straight month in which the share of homes sitting on the market for at least two months rose.
The post Report: Houses Gathering Dust on Market as Unsold Inventory Grows first appeared on The MortgagePoint.
