The supply of apartments jumped to the highest level in 4 years, while houses remained unsold
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The housing inventory shortage that has plagued the U.S. for years appears to be finally easing, but a significant factor behind what’s driving up supply gives little encouragement that stagnant market it will restart soon.
New report from Redfin says the number of homes for sale jumped to a four-year high in November, jumping 12.1% year over year. But the main reason for the increase is that most of the houses on the market are simply not selling.
Redfin data shows that housing supply hit a four-year high in November, but mostly because most homes for sale have been on the market for more than two months. (Liu Guanguan/China News Service/VCG via Getty Images/Getty Images)
More than half (54.5%) homes on the market last month it was listed for more than 60 days, and many potential buyers considered them too expensive. According to Redfin, that’s a 49.9% year-over-year increase and the largest share of stale inventory for November since 2019.
The report said the typical home that went into contract last month did so in 43 days, also the slowest pace in November since 2019.
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“A lot of the listings on the market are either stale or unlivable. There’s a lot of inventory, but it doesn’t seem like enough,” said Meme Loggins, Redfin Premier Realtor in Portland, Oregon.
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“I explain to sellers that if the price isn’t fair, their house will stay on the market,” Loggins said. “Houses that are well priced and in good condition disappear from the market in three to five days, but houses that are overpriced can sit for more than three months.”
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Data shows that Texas and Florida have the highest rates of old listings in the market. Miami has the highest share of homes on the market for more than 60 days of any major metro area at 63.8%, followed by Austin, which has 62.4% of listings sitting for more than two months without a contract.
The affordability crisis has resulted in most homes sitting on the market unsold for more than 60 days. (Fox News)
The housing market saw a flurry of activity fueled by high demand during the pandemic, but stagnated due to soaring house prices and mortgage rates have led to an ongoing affordability crisis that has pushed homeownership out of reach for many Americans.
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Housing costs repeatedly broke records in 2024, and the National Association of Realtors’ annual survey of buyers and sellers reported share of those who buy an apartment for the first time fell from 32% in 2023 to 24% in 2024, the lowest share since NAR began collecting data in 1981.
Lindsay Kornick of FOX Business contributed to this report.
