The housing market is witnessing a significant shift, as data from Redfin reveals that housing supply has reached a four-year high in November, with a growing number of homes remaining unsold. The active listings, which denote the total number of properties for sale, saw a month-over-month increase of 0.5% and an annual rise of approximately 12%, marking the highest level of inventory since 2020.
This surge in listings is not without consequences, as around 55% of these properties have lingered on the market for a minimum of 60 days without securing a contract. This marks the largest percentage of unsold inventory for any November since 2019, a noteworthy increase of roughly 50% compared to the previous year's figures. In analyzing the homes that did sell, the typical property was listed for 43 days, indicating the slowest November selling pace since 2019, which raises concerns about market dynamics.
"A lot of listings on the market are either stale or uninhabitable," remarked Meme Loggins, a Redfin Premier real estate agent. Despite the abundance of inventory, the perception remains that it does not sufficiently meet demand. According to Loggins, homes priced at $650,000 or below tend to attract the fiercest competition from potential buyers.
Interestingly, she notes that sellers within this price range frequently overprice their listings, which can lead to extended periods on the market. "Well-priced homes in good condition are flying off the market in three to five days, but homes that are overpriced can sit for over three months," she added, highlighting the critical importance of strategic pricing in the current landscape. Finally, the geographical distribution of unsold homes presents an interesting picture.
Texas and Florida are leading with the highest shares of unsold inventory among the top 50 metropolitan areas tracked by Redfin. In contrast, Providence, Rhode Island, and Milwaukee, Wisconsin, report the lowest percentages of unsold homes, illustrating regional variations within the broader housing market..