Nearly 50 Percent of US Homes Remain Unsold for at Least 60 Days: Report
Almost half of all homes remain unsold for at least 60 days, according to real estate brokerage Redfin. The stale sales figures persist despite the recent lowering of Fed rates.
Forty-eight percent of U.S. listings for August remain on the market, compared to last year's 43.2 percent. This marks the fifth straight month there was an increase in the share of unsold homes, according to a Sept. 25 report from the brokerage.
"We usually see home sales pick up when mortgage rates fall, but this year we are seeing the opposite—sales are dropping and homes are sitting longer on the market," said Redfin Senior Economist Sheharyar Bokhari, in a statement.
"Last week's big interest rate cut by the Federal Reserve will give buyers a boost in confidence, but it remains to be seen whether sales will speed up in any meaningful way as we move into the slower Fall season," he said.
Additionally, nearly 7 out of 10 homes (68.5 percent) were reported to be sitting unsold for at least a month, said Redfin. A typical U.S. home had to wait 37 days before being sold, but the numbers vary depending on the location.
Homes sold out the quickest in Seattle, where properties came under contract in 12 days, according to the metros analyzed by Redfin. Indianapolis followed with 16 days, Warren, Michigan (17 days), San Jose, California (18 days), and Oakland, California (20 days). There was an increase of two to six days among the top five metros when compared to last year's numbers.
Sales happened the slowest in Florida metros. It took a median 79 days for a home to be sold in West Palm Beach, followed by Fort Lauderdale (75 days), Jacksonville (65 days), and Miami (65 days). Austin, Texas, came within the lowest five, with 65 days.
There was a supply of 7.8 months at the current sales rate with a seasonally-adjusted estimated inventory of 467,000 new houses for sale at the end of August, said the report.
"Given the downward trajectory of rates, refinance activity continues to pick up, creating opportunities for many homeowners to trim their monthly mortgage payment," said the company. "Meanwhile, many looking to purchase a home are playing the waiting game to see if rates decrease further as additional economic data is released over the next several weeks."
Lower mortgage rates and more inventory should provide an impetus to the potential home buyer, however buyers remain hesitant owing to lingering indecision and an unstable political climate. The housing market and mortgage rates have turned into a key issue in the 2024 presidential election.
Meanwhile, the national median mortgage application payment decreased to $2,057 last month from $2,140 in July, according to the Mortgage Bankers Association.
"Homebuyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers' budgets a much-needed boost," said Edward Seiler, MBA's associate vice president, in a statement.
