The U.S. housing market experienced a significant uptick in national inventory in November, with active listings reaching their highest level since 2020, according to Redfin’s latest data.
- Listings increased by 0.5% from October to November on a seasonally adjusted basis and by 12.1% compared to November of the previous year.
Looks Can Be Deceiving: While this surge might initially appear as a positive shift after years of inventory scarcity, the underlying reasons reveal a more complex scenario. The primary driver behind this increase in supply isn’t a sudden influx of new homes but rather an accumulation of unsold properties.
- In November alone, over half (54.5%) of the listings lingered on the market for at least 60 days without securing a contract.
- This percentage marks the highest for any November since 2019, highlighting a significant shift in market dynamics.
Regionally, the data varies. Cities like Miami, Austin, Fort Lauderdale, San Antonio, and Orlando show exceptionally high percentages of long-term unsold listings, with shares ranging from 59.9% to 63.8%. This indicates a pronounced local market softening where sellers are not aligning their price expectations with current buyer willingness to pay.
- On the flip side, areas like Providence, Milwaukee, Montgomery County, Warren, and San Jose have seen lower percentages of homes stuck on the market, suggesting perhaps a more balanced approach to pricing or a different buyer demographic.
What They’re Saying: Meme Loggins, a Redfin Premier real estate agent in Portland, OR, offers insight into this market shift: “I explain to sellers that their house will sit on the market if it’s not fairly priced. Homes that are priced well and in good condition are flying off the market in three to five days, but homes that are overpriced can sit for over three months.” This advice underscores the new reality for sellers in 2024: the market has transitioned back towards favoring buyers, especially when compared to the frenzied conditions of 2022.
Bottom Line: The current trend in national inventory levels is a clear indicator of a market recalibration. Sellers must heed the advice of their realtors and adjust to the fact that the days of selling at any price are over. Pricing homes competitively is not just a strategy but a necessity to avoid contributing to the inventory pileup.
