The housing supply in the United States has climbed to the highest level recorded since at least 2020. However, the supply is up largely because many sellers are failing to find buyers for their homes.
That is according to a new report from Redfin, which showed that housing inventory rose 0.5% month-over-month and 12.1% year-over-year in November. That is the largest inventory recorded in four years on a seasonally adjusted basis.
However, the supply surge is caused largely by an increase in the number of listed homes that are failing to find buyers. More than half (54.5%) of all listings in November were unable to secure a contract for at least 60 days. That is the highest share recorded for any November since at least 2019.
Additionally, the homes that were able to secure a contract in November stayed on the market for an average of 43 days. That is the slowest pace since at least the same month in 2019, the Redfin report noted.
Why Are Homes Failing To Sell?
Hopeful buyers have been pushed to the sidelines last year, largely due to high prices and elevated mortgage rates. The median sale price of a typical home in November was $429,963, while mortgage rates for the 30-year term hovered between 6.70% and 6.85%, per Freddie Mac.
The affordability issues have led to a decline in buying activity, especially as more homeowners stay locked into low rates at their current homes. Many have also resorted to renting rather than buying.
Where Are Homes Sitting on the Market the Longest?
Of the top 50 metro areas in the US, homes listed in Miami sat on the market the longest, with 63.8% of listings in November failing to go under contract for 60 days or longer. Following Miami are Austin, TX (62.4%), Fort Lauderdale, FL (62.3%), San Antonio, TX (60.3%), and Orlando, FL (59.9%).
Of all states, Florida saw the biggest rise in stale inventory in November. Tampa, for instance, had 56.9% of its listings sitting on the market for 60 days without going under contract.
