Published by CNBC | June 14, 2024
More homeowners are listing their homes for sale. But properties are taking longer to sell as potential buyers face high prices and interest rates. Here’s what that means for homebuyers and sellers.
New listings from home sellers jumped in May, up 13% from a year ago, according to the latest market report by Zillow.
“You have an increase in sellers coming back on the market,” said Orphe Divounguy, a senior economist at Zillow.
But with buyers not returning to the market, many new listings are just adding to inventory. The number of homes on the market rose 22% compared with last year, Zillow found.
“Homes are staying on the market for a bit longer because the sales are not keeping up with the flow of homes coming on the market,” Divounguy said.
Almost two-thirds, or 61.9%, of homes listed on the market in May had been for sale for at least 30 days without going under contract, according to a new analysis by Redfin. About 40.1% of homes that were for sale in May had been listed for at least two months without going under contract, Redfin found.
“The market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market,” said Daryl Fairweather, chief economist at Redfin.
Almost two-thirds, or 61.9%, of homes listed on the market in May had been for sale for at least 30 days without going under contract, according to a new analysis by Redfin. About 40.1% of homes that were for sale in May had been listed for at least two months without going under contract, Redfin found.
“The market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market,” said Daryl Fairweather, chief economist at Redfin.
“We’re short nationwide of about 4.3 million homes,” he said. “We’re still in a housing unit deficit.”
As mortgage rates have remained high and housing affordability has strained household finances, potential buyers have been unable to enter the market.
