Nearly two-thirds (64.7 percent) of homes that were on the market in June had been listed for at least 30 days without going under contract, according to a new report from Redfin.
That’s up from 59.6 percent a year earlier, marking the biggest annual increase in a year, and the highest share of any June since 2020.
June was the fourth straight month in which the portion of homes sitting on the market for at least one month ticked up on a year-over-year basis. Less-desirable listings are sitting on the market, causing unsold inventory to pile up, according to Redfin.
More homes are sitting on the market without finding a buyer because record high home prices and elevated mortgage rates are giving buyers cold feet. And while demand is slow, supply is relatively high. The total number of homes for sale posted its biggest year-over-year gain on record in June because even though new listings are losing steam, many listings are sitting on the market, causing inventory to pile up, Redfin said.
“Overall, the market is fairly stagnant,” Shay Stein, a Redfin Premier agent in Las Vegas, said in a release. “There are more listings hitting the market, but a lot of them aren’t in good condition or they’re not in a desirable neighborhood—and sellers are pricing unrealistically high. A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high. My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
Stein noted that move-in ready, relatively affordable homes in popular neighborhoods, along with luxury homes that are priced fairly and don’t need work, are still getting multiple offers and selling quickly.
In Dallas, 63 percent of listings sat on the market for at least 30 days in June, up from 52 percent a year earlier, the biggest uptick of all the major U.S. metros. It was followed by four Florida metros: (Tampa, 70 percent, up from 60 percent), Fort Lauderdale (77 percent, up from 68 percent), Jacksonville (70 percent, up from 61 percent) and Orlando (69 percent, up from 60 percent).
Redfin said there are a few reasons Florida and Texas are seeing the biggest increase in unsold inventory. Those states are building more new homes than other parts of the country, adding to overall home supply at a time when demand is fairly slow.
The share of stale home listings increased year-over-year in 44 of the 50 most populous metros, and declined in just five — though the decreases were small.
In Nassau County, N.Y., 57 percent of listings sat on the market for at least 30 days without going under contract, down from just over 58 percent a year earlier. Next came New York (70 percent, down from 72 percent), Las Vegas (59 percent, down from 60 percent), Newark, N.J. (53.5 percent, down from 54.1 percent) and Warren, Mich. (50.6 percent, down from 51 percent). The share was essentially flat in Philadelphia (66.4 percent).
Nationwide, more than two in five (42.6 percent) homes that were on the market in June had been listed for at least 60 days without going under contract, up from 38.4 percent a year earlier — the biggest annual increase in nearly a year. June is the third straight month in which the share of homes sitting on the market for at least two months has risen.