SEATTLE — A growing share of homes across the United States is lingering on the market as higher prices and cautious buyers continue to slow housing activity, according to a new report.
An analysis by Redfin found that 52.2% of homes listed on Redfin.com in February had been on the market for at least 60 days without going under contract, up from 50.1% a year earlier and the highest level since 2019, Mortgage Professional America reported.
In total, sellers were sitting on approximately $347 billion worth of “stale” inventory nationwide, a record for this time of year. Redfin defines stale inventory as homes that remain active after at least 60 days on the market.
“Sellers know it’s a buyer’s market, but they still want to get as much money as they can for their home,” Jason Gale, a Redfin Premier agent in New Orleans, told Mortgage Professional America. “So, they list on the high end, expecting buyers to negotiate down, and that’s leading to listings staying on the market for a long time.”
Below Asking Price
Gale added in remarks to the publication that while deals are still occurring, most homes are selling below asking price, and some sellers are ultimately forced to pull listings after extended periods without a sale.
The buildup of unsold homes is particularly pronounced in Florida. Nearly two-thirds of listings in Miami — 62.6% — were considered stale in February, with San Antonio, Pittsburgh and West Palm Beach also reporting more than 55% of listings lingering beyond 60 days, according to the report.
By contrast, supply remained tighter in parts of California, where just 19.8% of listings in San Jose and 24% in San Francisco met the 60-day threshold.
‘Mixed Picture’
Separate data from the National Association of Realtors show a mixed picture for the broader housing market. The group reported that existing home sales rose 1.7% in February from the prior month to a seasonally adjusted annual rate of 4.09 million, exceeding many economists’ expectations, Mortgage Professional America reported.
However, sales were still down 1.4% from a year earlier. Inventory rose 4.9% year over year to 1.29 million homes, representing a 3.8-month supply — a level that continues to favor sellers by historical standards.
“Housing affordability is improving, and consumers are responding,” NAR Chief Economist Lawrence Yun said, according to the report. “Still, there is a long way to go to return to pre-pandemic levels of transaction activity.”
Yun said in a statement that while the U.S. economy has added millions of jobs since 2019, annual home sales remain roughly one-million below pre-pandemic levels, highlighting the ongoing imbalance between supply, affordability and buyer demand.
