Nearly 50 Percent of US Homes Remain Unsold for at Least 60 Days: Report

A home available for sale is shown in Austin, Texas, on May 22, 2024. Brandon Bell/Getty Images

Almost half of all U.S. homes on the market remain unsold for at least 60 days, according to real estate brokerage Redfin. The stale sales figures persist despite the recent lowering of Fed rates.

Forty-eight percent of U.S. listings for August remain on the market, compared to last year’s 43.2 percent. This marks the fifth straight month there was an increase in the share of unsold homes, according to a Sept. 25 report from the brokerage.

“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,” said Redfin Senior Economist Sheharyar Bokhari, in a statement.

“Last week’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,” he said.

The Federal Reserve slashed interest rates by half a percentage point to a range of 4.75 percent to 5 percent on Sept. 18. It was the first rate decrease in four years.

Additionally, nearly 7 out of 10 homes (68.5 percent) were reported to be sitting unsold for at least a month, said Redfin. A typical U.S. home had to wait 37 days before being sold, but the numbers vary depending on the location.

Homes sold out the quickest in Seattle, where properties came under contract in 12 days, according to the metros analyzed by Redfin. Indianapolis followed with 16 days, Warren, Michigan (17 days), San Jose, California (18 days), and Oakland, California (20 days). There was an increase of two to six days among the top five metros when compared to last year’s numbers.

Sales happened the slowest in Florida metros. It took a median 79 days for a home to be sold in West Palm Beach, followed by Fort Lauderdale (75 days), Jacksonville (65 days), and Miami (65 days). Austin, Texas, came within the lowest five, with 65 days.

“One reason homes are selling slower in Florida is the spike in new homes built over the past few years to meet the demand of people moving to the state during the pandemic,” said Redfin. “Now that inbound migration has leveled off, homes are sitting longer—with rising insurance and [homeowners’ association] costs also putting a dent in buyer demand.”

New Home Sales

Sales of new single-family houses in August were lower by 4.7 percent compared to the prior month.

According to estimates published by the U.S. Census Bureau on Sept. 25, there were 716,000 single-family homes sold in August with a median sales price of $420,600. The average sales price was $492,700.

There was a supply of 7.8 months at the current sales rate with a seasonally-adjusted estimated inventory of 467,000 new houses for sale at the end of August, said the report.

The 30-year fixed-rate mortgage (FRM) reached its lowest level in two years, according to mortgage company Freddie Mac, which said that the 30-year FRM was 6.08 percent as of the week ending Sept. 26, while the 15-year FRM was 5.16 percent.

“Given the downward trajectory of rates, refinance activity continues to pick up, creating opportunities for many homeowners to trim their monthly mortgage payment,” said the company. “Meanwhile, many looking to purchase a home are playing the waiting game to see if rates decrease further as additional economic data is released over the next several weeks.”

Lower mortgage rates and more inventory should provide an impetus to the potential home buyer, however buyers remain hesitant owing to lingering indecision and an unstable political climate. The housing market and mortgage rates have turned into a key issue in the 2024 presidential election.

Meanwhile, the national median mortgage application payment decreased to $2,057 last month from $2,140 in July, according to the Mortgage Bankers Association.

“Homebuyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers’ budgets a much-needed boost,” said Edward Seiler, MBA’s associate vice president, in a statement.