Nearly two-thirds (64.7%) of homes that were on the market in June had been listed for at least 30 days without going under contract, according to a report from Redfin.
That’s up from 59.6% a year earlier, marking the biggest annual increase in a year, and the highest share of any June since 2020.
The report shows that demand for single-family homes is currently weak, resulting in more homes sitting on the market for at least one month.
In particular, less-desirable listings are sitting on the market, causing unsold inventory to pile up.
Record high home prices and elevated mortgage rates are giving buyers cold feet, Redfin says.
And while demand is slow, supply is relatively high.
“Overall, the market is fairly stagnant,” says Shay Stein, a Redfin Premier agent in Las Vegas, in the report. “There are more listings hitting the market, but a lot of them aren’t in good condition or they’re not in a desirable neighborhood—and sellers are pricing unrealistically high.
“A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high,” Stein adds. “My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
Stein notes that move-in ready, relatively affordable homes in popular neighborhoods, along with luxury homes that are priced fairly and don’t need work, are still getting multiple offers and selling quickly.
Texas and Florida are the two states where inventory is increasing fastest.
In Dallas, 63% of listings sat on the market for at least 30 days in June, up from 52% a year earlier, the biggest uptick of all the major U.S. metros. It was followed by Tampa, where 70% of homes on the market in June had been listed at least 30 days without going under contract, up from 60%; Fort Lauderdale (77%, up from 68%); Jacksonville (70%, up from 61%); and Orlando (69%, up from 60%).
There are a few reasons Florida and Texas are seeing the biggest increase in unsold inventory, Redfin says. Those states are building more new homes than other parts of the country, adding to overall home supply at a time when demand is fairly 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—though the decreases were small.
Photo: Breno Assis