Housing Inventory Hits 4-Year High as Buyers Hesitate
Anya’s Market Bites:
The U.S. housing market is experiencing a significant increase in inventory as high prices and mortgage rates continue to deter buyers. According to a recent Redfin analysis, active home listings surged by 12% year-over-year in November, marking the highest supply level in four years.
Key Takeaways:
Increased Listings: The number of active home listings rose 0.5% from the previous month and 12% from the prior year, reaching a four-year high.
Homes Sitting Longer: 55% of listings remained on the market for at least 60 days, the highest share for any November since 2019.
Slower Sales Pace: The average time for a home to go under contract extended to 43 days, the slowest November since 2019.
Buyer Reluctance: Despite mortgage rates slightly decreasing, affordability challenges keep buyers on the sidelines, either staying in their current homes or renting.
Pricing Matters: Well-priced homes in good condition are selling quickly (within 3-5 days), while overpriced homes can linger on the market for over three months.
Regional Trends: Florida and Texas are seeing a sharp rise in stagnant inventory due to a homebuilding boom.
Miami led major metros, with nearly 64% of listings sitting unsold for over 60 days.
Fort Lauderdale and Austin followed closely behind.
Rising HOA fees, high insurance costs, and climate risks are making Florida less attractive to buyers.
Potential Market Shift? Some signs indicate a possible recovery:
Total single-family home sales turned positive for the first time in 39 months.
Pending home sales increased for four consecutive months, reaching their highest level since early last year.
While inventory is at its highest in years, the market remains a challenge for both buyers and sellers. Proper pricing and favorable conditions will be key to selling homes in this evolving landscape.
(Source: YahooFinance)
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Anya Derebenskiy
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