Houses Stay Longer on Market in Late 2024

As we wrap up 2024, the housing market has seen a growth in supply, but there's a catch. Many homes have been on the market for quite a while without finding buyers, a trend not seen since 2019. In November 2024, active listings were up by 12. 1% compared to the same month in 2023, hitting the highest level since 2020, according to a report by Redfin. Over half of these homes (54. 5%) had been on the market for at least two months without a sale, a stark increase from the previous year. The homes that did sell took an average of 43 days, the slowest pace for November since 2019. Real estate agents like Meme Loggins from Redfin point out that overpriced or uninhabitable homes are sitting on the market for months, while fairly priced and well-maintained homes sell quickly.

High mortgage rates and rising home prices also play a role. Rates rose above 7% in October and haven't dropped much since. Home prices nationally jumped by 3. 6% in October compared to the same month a year earlier, according to S&P CoreLogic Case-Shiller. However, there's some good news. Pending home sales, which show how many homes have been sold but not yet closed, climbed in November to the highest level in nearly two years. This suggests buyers are getting used to higher interest rates and taking advantage of available inventory. But the slowdown in sales might make 2025 a challenging year. With interest rates still high, people are choosing to rent longer. And while some sellers are open to moving, high costs for brokers and movers are a barrier.

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