For-sale homes across the country are spending a growing period of time sitting idle on the market before going under contract, recent data shows.
As buyers remained wary of sky-high prices, unbudging mortgage rates and festering economic uncertainty, the typical home sold last month spent 43 days on the market—the longest span for any July since 2015—before buyer and seller closed a deal on it, according to the real estate brokerage Redfin.
In July 2024, the typical U.S. home sold after about 35 days on the market. In July 2023 and 2022, it was 30 and 22 days, respectively. In July 2021, at the height of the pandemic homebuying frenzy, a home would sit on the market for an average of 16 days before going under contract.
But the U.S. housing market has changed drastically since then.
Why Are For-Sale Homes Sitting Idle on the Market for So Long?
There is a simple reason homes are spending more time on the market before being sold: There are not as many interested buyers as sellers. Demand has shrunk in recent months across the country as home prices remain high and mortgage rates still hover near the 7 percent mark.
Other housing costs—including property taxes, homeowners association fees and home insurance premiums—have also been rising in recent years, making it harder for buyers to be able to afford purchasing—and maintaining—a home.
In July, pending home sales fell by 11 percent compared to a month earlier to the lowest seasonally adjusted level since November 2023. Existing-home sales, on the other hand, slid to a seasonally adjusted annual rate of 4,150,266—the lowest level in almost a year.
As sales dwindled, inventory began growing, giving buyers more options and more negotiating power. Housing supply on the U.S. market, about 1.9 million according to Redfin, is now near its five-year high.
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But sellers are taking notice of how the market is shifting toward buyers. Many are reacting by doing what they can to avoid what they may perceive as a loss: They are delisting their properties. According to Redfin, July saw the biggest monthly drop in active listings since 2023.
Stunningly, home prices are still growing. The median U.S. home sale price rose 1.4 percent year over year in July to $443,867—the highest July level on record, according to Redfin. The pace of this price growth, however, was still much slower than in any year after 2019. Compared to June, the median sale price fell by 0.6 percent.
Where Are Homes Taking Longer To Sell?
Florida dominates the list of top 10 U.S. metropolitan areas where homes take the longest to sell. In West Palm Beach, the typical home sold in July spent 95 days on the market before going under contract; in Fort Lauderdale, 92; in Miami, 86; and in Jacksonville, 75.
Several cities in Texas also appeared on this list, including Austin (68 days) and San Antonio (66 days).
These are the top 10 metros where homes took longer to sell in July:
- West Palm Beach, Florida: 95 days
- Fort Lauderdale, Florida: 92 days
- Miami, Florida: 86 days
- Jacksonville, Florida: 75 days
- Austin, Texas: 68 days
- Phoenix, Arizona: 67 days
- San Antonio, Texas: 66 days
- Nashville, Tennessee: 60 days
- Las Vegas, Nevada: 55 days
- Charlotte, North Carolina: 55 days
Florida and Texas have been building the most new homes in the country over the past few years in response to the explosion of their housing markets during the pandemic homebuying frenzy, when many Americans relocated to both states.
However, this inventory has landed on the market after that homebuying boom ended, and sellers and developers are now struggling to offload many of these properties.