The U.S. housing market is facing a dramatic slowdown, with nearly half of all homes for sale in August sitting on the market for over 60 days—up from 43% just a year ago. On average, homes took 37 days to find a buyer, a full six days longer than last year, and the landscape varies significantly depending on location.
Seattle saw homes selling at lightning speed, with a median of just 12 days on the market in August, making it the fastest market among the country’s 50 largest metro areas. However, even this city experienced a slowdown compared to the previous year. Other metros like Indianapolis (16 days), Warren, MI (17 days), San Jose, CA (18 days), and Oakland, CA (20 days) followed closely behind.
On the opposite end, Florida is struggling. In West Palm Beach, homes lingered on the market for a staggering 79 days, with other major Florida cities like Fort Lauderdale (75 days), Jacksonville (65 days), and Miami (65 days) not far behind. This extended market time is partly due to a surge in new home construction to accommodate pandemic-driven migration, which has now slowed, leaving excess inventory. Rising insurance and HOA costs are also weighing down buyer demand.
Builders have responded by dropping prices, with the median sales price of new homes in August at $420,600, down 4.6% from last year. In contrast, the price of existing homes rose 3.1%, reaching a median of $416,700. However, buyers are hesitating as mortgage rates remain high, leading to a decline in existing home sales.
Inventory continues to rise, with a 1.6% increase week-over-week and a staggering 37.2% year-over-year growth. As the housing market braces for what comes next, it’s clear that regional disparities and economic pressures will shape the months ahead.
Sources:
www.redfin.com/news/sales-speed-stale-listings-august-2024/
www.calculatedriskblog.com/2024/09/housing-sept-23rd-weekly-update.html?m=1