SEATTLE, WA — The U.S. housing market is experiencing a notable slowdown, with nearly half (48%) of all listings remaining unsold for at least 60 days as of August, according to a new report from Redfin. This percentage marks the highest for any August since 2019 and represents an increase from 43.2% a year ago. It’s the fifth consecutive month showing an annual rise in long-standing unsold listings.
August witnessed a continuation of the sluggish summer market, pushing home sales to their lowest since the onset of the pandemic. Redfin Senior Economist Sheharyar Bokhari noted an unusual trend where declining mortgage rates haven’t spurred the expected increase in home sales. “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,” Bokhari stated. Despite a recent interest rate cut by the Federal Reserve, it’s uncertain if this will significantly accelerate sales moving into the fall.
Almost 70% of homes lingered on the market for over 30 days in August, up from 63.9% the previous year. This trend has continued for six months in a row, marking the highest share of month-old listings since before the pandemic in 2019. Redfin Premier agent Andrew Vallejo from Austin, TX, emphasized the necessity for homes to stand out to sell quickly. He shared, “For a home to sell fast, or with multiple bids, it needs to be immaculately presented and have a unique design, or additional features like a pool.”
The speed at which homes sell varies significantly by location. In Seattle, homes were typically sold within 12 days, making it the fastest market among the 50 most-populous metros analyzed by Redfin. Conversely, homes in West Palm Beach, FL, spent a median of 79 days on the market. This prolonged market presence extends to other Florida metros, including Fort Lauderdale and Miami, where homes took over nine weeks to sell.
Redfin Chief Economist Daryl Fairweather highlighted the importance of pricing in today’s market. “Anyone who has been paying attention to the housing market over the past few years knows that desirable homes sell right away. Now if a home is still on the market after a few weeks, buyers assume there’s something wrong with it,” Fairweather explained.
The housing slowdown in Florida can be attributed to a surge in home construction during the pandemic to accommodate incoming residents. With migration slowing and rising costs like insurance and HOA fees, demand has cooled, leaving homes on the market longer.
This report spotlights a shifting real estate landscape, where strategic pricing and standout property features are critical for sellers hoping to navigate the current market challenges.
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