A Seller’s Market No More? Home Listings Go Stale As Market Cools

Buyers are putting home purchases on the backburner as they wait for mortgage rates to drop and home price growth to decelerate, and as a result, for-sale listings are spending more time on the market before going under contract, Redfin reports. The share of U.S. homes listed for 30 days or longer without going under contract rose 12.5% year-over-year in July, meaning 61.2% of for-sale homes lingered on the market for at least 30 days, up from 54.4% one year ago.

An uptick in stale inventory is a stark contrast to the mid-pandemic housing boom, which saw homes fly off the market at a record pace. As home sales slow and price growth cools, a prolonged seller’s market is gradually shifting to a buyer’s market, though any noticeable change in housing affordability will likely be delayed as home prices continue to post new gains.   

“People want to know whether we’ve officially shifted from a seller’s market to a buyer’s market. While there’s not a clear line separating those two ideas, homes sitting on the market longer is a point in buyers’ favor,” said Redfin Deputy Chief Economist Taylor Marr. “Buyers can take their time making careful decisions about homes without worrying so much about bidding wars, offering over the asking price and waiving contingencies. It’s a different story for sellers, who have spent the last two years hearing about their neighbors’ homes getting multiple offers the day they go on sale. Now they need to price lower and get back to the basics of selling a home, like staging and sprucing up painting, to get buyers’ attention.”

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