Those days seem to be over. The share of homes that were on the market for 30 days or more rose to 61.2% nationally in July, according to a recent report by real estate brokerage Redfin. That’s a 12.5% increase from July 2021, when 54.4% of homes were on the market for at least 30 days without going through a contract.
Housing hotspots threatened by falling prices from recession
July’s jump in outdated listings represents the first year-over-year increase since the start of the pandemic-induced housing market frenzy and is nearly the largest increase on Redfin’s records, which date back to 2012. The only time the year-over-year increase was higher was in April 2020, when the housing market in most places stalled at the start of the pandemic. That month, the percentage of homes that remained on the market without a contract for more than 30 days increased by 13.9% compared to April 2019.
The pace of sales has slowed in recent months due to mortgage rates rising rapidly to 5% or more, from rates below 3% in late 2021 and early 2022. In addition to some buyers abandoning the market due to affordability issues, recession fears and high inflation are driving down buyer demand.
The number of homes for sale has increased gradually over the past few months, primarily due to unsold stale listings rather than new listings. While the number of homes for sale increased by 4% in July compared to July 2021, the largest increase since mid-2019, the number of new listings fell by 6%.
For buyers, outdated listings offer the advantage of being able to take their time deciding whether to make an offer and leaving more room to negotiate with sellers.
The major metropolitan areas that saw the largest percentage increase from July 2021 to July 2022 in homes that remained on the market for at least 30 days include:
⋅ Oakland, California: 60.7%
⋅ Phoenix: 54.5%
⋅ Anaheim, California: 49.7%
⋅ Riverside, CA: 46.7%
⋅ Fort Worth: 43.4%
⋅ Washington: 42.5%
⋅ Sacramento: 41.7%
⋅ Seattle: 41.3%
Of the 50 largest metropolitan areas, the share of outdated listings declined in only one metropolitan area: Fort Lauderdale, Florida, where it was down about 1% in July 2022 from July 2021.
To read the full report, including a graph and table at the metropolitan level, Click here.