Housing supply jumps to 4-year high as homes remain unsold

The shortage of housing inventory that has plagued the United States for years finally appears to be easing, but the important factor behind the rise in supply provides little encouragement that… Stagnant market Will be moving again anytime soon.

new Report from Redfin It says the number of homes for sale jumped to a four-year high in November, rising 12.1% year over year. But the main reason for this increase is that most homes on the market are not selling.

More than half (54.5%) Homes are on the market Last month they were listed for more than 60 days, with many of them considered too expensive by potential buyers. According to Redfin data, this is up 49.9% from a year ago, the highest share of obsolete November inventory since 2019.

The typical home that went under contract last month did so in 43 days, also the slowest pace in November since 2019, the report said.

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“A lot of the listings on the market are either old or uninhabitable,” said Mimi Loggins, a real estate agent with Redfin Premier in Portland, Oregon. “There’s a lot of inventory, but it doesn’t seem like it’s enough.”

“I explain to sellers that their home will remain on the market if it is not priced fairly,” Loggins said. “Homes that are well priced and in good condition will disappear from the market within three to five days, but overpriced homes 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 had the largest share of homes on the market for more than 60 days of any major metro at 63.8%, followed by Austin, which had 62.4% of listings that remained more than two months without entering into a contract.

The housing market saw a flurry of activity driven by high demand during the pandemic, but became stagnant as home prices rose and… Mortgage rates This has led to an ongoing affordability crisis that has pushed homeownership out of reach for many Americans.

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Housing costs will repeatedly break records in 2024, a report from the National Association of Realtors (NAR) annual survey of buyers and sellers found. Share of first-time homebuyers It fell from 32% in 2023 to 24% in 2024, the lowest share since NAR began collecting data in 1981.

FOX Business’ Lindsay Cornick contributed to this report.