Nearly two-thirds of the homes sold in June had been on the market for at least 30 days but were not under contract. This number is the highest ratio for any June since 2020.
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As the cost of owning a home continues to rise, properties sit on the market longer, waiting for willing buyers.
Redfin reported Wednesday that nearly two-thirds (64.7%) of homes sold in June had been on the market for at least 30 days without a contract. That’s up from 59.6% last year, the largest annual increase last year and the highest rate for any June since 2020.
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This month also marks the fourth consecutive month of year-over-year growth in the share of homes that have been on the market for at least a month.
While inventory is stronger than in recent years, record home prices and higher mortgage rates are keeping buyers away. In June, the total number of homes for sale saw its largest year-over-year increase ever as many listings remained on the market.
“Overall, the market is pretty stagnant,” Las Vegas Redfin Premier agent Shay Stein said in a Redfin report.
“There are more homes on the market, but many of them are in poor condition or not in desirable neighborhoods, and sellers are pricing them unrealistically high. Many sellers are willing to keep their homes on the market until they get their Desirable price, and when mortgage rates are still high, many buyers aren’t willing to pay the sky-high price. My advice to serious sellers is to price it fairly and make cosmetic repairs before listing.
Stan added that properties that are move-in-ready, relatively affordable and in good neighborhoods, as well as affordable luxury homes, are still moving fast.
Redfin reported that Florida and Texas saw the largest increases in unsold inventory, largely due to greater home construction compared to the rest of the country. As demand wanes, new homes are being built, causing inventory levels to rise.
Dallas saw the largest increase in obsolete inventory, with 63% of listings remaining on the market for at least 30 days in June, a 52% year-over-year increase. Meanwhile, in Tampa, 70% of homes for sale have been on the market for at least 30 days, up from 60% in June 2023. That’s up from 68% the year before, and in Jacksonville, that number is 70%, up from 61% the year before. In Orlando, 69% of homes for sale have been on the market for one month, up from 60% in June 2023.
Among the 50 most populous metropolitan areas in the United States, 44 have seen an increase in the proportion of older housing listings year over year. Five metro areas have seen their share of obsolete listings decline year over year, but only by a fraction (2% or less): Nassau County, NY; New York, NY; Las Vegas, NV; Newark, NJ ; and Warren, Michigan.
Meanwhile, 42.6% of homes on the market in June had been on the market for at least 60 days without a contract, up from 38.4% last year. The increase is the largest annual increase in nearly a year. June also marked the third consecutive month that the share of homes that have been on the market for at least two months has increased.
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