The housing inventory shortage that has been a persistent issue in the United States for years seems to be showing signs of improvement, according to a recent report from Redfin. The report indicates that the number of homes for sale jumped to a four-year high in November, increasing by 12.1% compared to the previous year. However, the increase in supply is primarily due to the fact that a significant portion of the homes on the market are not selling.
According to Redfin data, more than half (54.5%) of homes listed for sale last month had been on the market for over 60 days, with many potential buyers finding them too expensive. This represents a significant increase of 49.9% compared to the previous year, marking the highest share of stagnant inventory for a November since 2019.
The report also highlights that the typical home that went under contract in November took 43 days to do so, the slowest pace for the month since 2019. Real estate agents, such as Meme Loggins from Portland, Oregon, have noted that properly pricing homes is crucial for them to sell quickly, with well-priced and well-maintained properties flying off the market within days, while overpriced homes can linger for months.
States like Texas and Florida are experiencing the highest rates of old listings on the market, with cities like Miami and Austin having significant shares of homes that have been listed for more than 60 days without going under contract. The ongoing affordability crisis, driven by soaring home prices and mortgage rates, has made homeownership unattainable for many Americans, leading to a decline in first-time homebuyers.
Overall, while the increase in housing inventory may offer some relief to the market, the underlying issues related to affordability and pricing continue to pose challenges for both buyers and sellers.