The U.S. Housing Inventory Shortage May Be Easing, But Numbers Point to Stagnant Market
The housing inventory shortage that has plagued the U.S. for years appears to be slowly improving, but a significant factor is weighing on the stagnant market. According to a new report from Redfin, the number of homes for sale jumped to a four-year high in November, increasing 12.1% year over year. However, the surge in supply is largely due to most homes on the market failing to sell.
Redfin data shows that 54.5% of homes on the market last month had been listed for more than 60 days, with many deemed too expensive for would-be buyers. This is up 49.9% from a year ago, the highest share of stale inventory for a November since 2019. The typical home that went under contract last month did so in 43 days, which is the slowest November pace since 2019.
Meme Loggins, a Redfin Premier real estate agent in Portland, Oregon, noted that many listings on the market are either stale or uninhabitable, saying, “There’s a lot of inventory, but it doesn’t feel like enough.” She advises sellers to price their homes fairly, as those that are well-priced and in good condition are selling quickly, while overpriced homes sit on the market for longer.
The data shows that Texas and Florida have the highest rates of old listings, with Miami having the greatest share of homes on the market for longer than 60 days. Austin, Texas, comes in second, with 62.4% of listings sitting unsold for more than two months.
The ongoing affordability crisis, driven by soaring home prices and mortgage rates, has led to the majority of homes on the market sitting unsold for over 60 days. The National Association of Realtors’ annual survey of buyers and sellers found that the share of first-time homebuyers dropped from 32% in 2023 to 24% in 2024, the lowest share since 1981.
