Nearly half, or 48 percent, of home listings lingered on the market for at least 60 days in August, marking the highest share for any August since 2019, according to a new report from Redfin.
That share was up from 43 percent a year ago and marked the fifth consecutive month in which the share of homes sitting for at least 60 days posted an annual increase.
The sluggish summer market continued in August, with home sales dropping to their lowest level since the start of the pandemic.
“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,” Redfin Senior Economist Sheharyar Bokhari said in a release. “Last month’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.”
Nearly seven out of every 10 homes, or 68.5 percent, on the market in August had been sitting for at least 30 days, up from 63.9 percent a year ago. It was the sixth straight month that the share of month-old listings increased and the highest share for any August since before the pandemic in 2019.
“For a home to sell fast, or with multiple bids, it needs to be immaculately presented and have a unique design, or additional features like a pool,” said Andrew Vallejo, a Redfin Premier agent in Austin, Texas. “I had a home receive multiple offers about a month ago — a rarity for us at the moment. It sold quickly and for $25,000 over list price because of how pretty it was — everything was perfectly painted, clean, and manicured.”
Another way to examine the speed of the market is by looking at the median number of days it takes for homes to find a buyer.
“Anyone who has been paying attention to the housing market over the past few years knows that desirable homes sell right away. That's been true ever since the overall market slowed down after mortgage rates shot up a couple of years ago,” Redfin Chief Economist Daryl Fairweather said. “Now if a home is still on the market after a few weeks, buyers assume there’s something wrong with it. That’s why it’s so important to price your home to move quickly. Buyers see the days on market, and when it starts to tick up, it’s like a scarlet letter.”
The typical home was listed for 37 days before going under contract in August — six days longer than a year earlier. However, results varied significantly depending on the location.
The typical Seattle home was sold in 12 days in August, the fastest pace among the 50 most-populous metros that Redfin analyzed, though still four days slower than a year earlier.
Indianapolis (16 days), Warren, Mich. (17 days), San Jose, Calif. (18 days), and Oakland, Calif., (20 days) rounded out the top five major metros where homes sold the fastest.