More homeowners\u00a0are listing their\u00a0homes\u00a0for sale, but properties are taking longer to sell as potential buyers face high prices and interest rates.<\/p>\n
New listings from home sellers jumped in May, up 13% from a year ago,\u00a0according\u00a0to the latest market report by Zillow.<\/p>\n
\u201cYou have an increase in sellers coming back on the market,\u201d said Orphe Divounguy, a senior economist at Zillow.<\/p>\n
But with buyers not returning to the market, many new listings are just adding to inventory. The number of homes on the market rose 22% compared with last year, Zillow found.<\/p>\n
\u201cHomes are staying on the market for a bit longer because the sales are not keeping up with the flow of homes coming on the market,\u201d Divounguy said.<\/p>\n
Almost two-thirds, or 61.9%, of homes listed on the market in May had been for sale for at least 30 days without going under contract, according to a\u00a0new\u00a0analysis by Redfin. About 40.1% of homes that were for sale in May had been listed for at least two months without going under contract, Redfin found.<\/p>\n
\u201cThe market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market,\u201d said Daryl Fairweather, chief economist at Redfin.<\/p>\n
Yet despite the recent jump in supply, \u201cwe\u2019re still starved for inventory in the for-sale market,\u201d said Divounguy. The housing inventory in the U.S. is still 34% below pre-pandemic levels, according to Zillow.<\/p>\n
\u201cWe\u2019re short nationwide of about 4.3 million homes,\u201d he said. \u201cWe\u2019re still in a housing unit deficit.\u201d<\/p>\n
Homebuyers are waiting on lower mortgage rates<\/p>\n
As mortgage rates have remained high and housing affordability has strained household finances, buyers have been unable to enter the market, Divounguy explained.<\/p>\n
\u201cBuyers are facing these incredibly high mortgage rates, at least relative to what they were during the pandemic,\u201d said Fairweather, who believes homebuyers might lack the motivation and financial ability to purchase a home.<\/p>\n
The 30-year fixed rate mortgage in the U.S.\u00a0slid\u00a0to 6.95% on June 13, lower from 6.99% a week prior, according to Freddie Mac data via the Federal Reserve.\u00a0<\/p>\n
While mortgage rates could \u201cchange pretty quickly\u201d or \u201con a dime,\u201d said Fairweather, buyers are unlikely to see big movement in the near term.\u00a0The Fed held rates\u00a0steady at its June meeting and now anticipates just one rate cut this year. Its next meeting is July 30-31.<\/p>\n
\u201cThere\u2019s no right answer for homebuyers who are deciding whether to wait or not,\u201d Fairweather said. \u201cIt\u2019s just up to chance when mortgage rates drop. Nobody really knows when that will happen, so it\u2019s hard to plan your life around that.\u201d<\/p>\n
Some markets in the U.S. are seeing a significant increase in unsold inventory. About 60.5% of listings in Dallas, Texas, stayed on the market for at least 30 days, up from 53% a year earlier, according to Redfin.<\/p>\n
In Fort Lauderdale, Florida, the share of unsold listings that have stayed on the market for at least 30 days is 75.5%, up from 68.2% a year prior, Redfin found.<\/p>\n
A similar increase is happening in two other areas in Florida. The share of unsold homes in Tampa that have been on the market for 30 days is 68.7%, up from 61.9% a year ago; in Jacksonville, 69.2%, up from 62.9% in the same period, per Redfin data.<\/p>\n
\u201cWhen you give buyers more options, that means they have more bargaining power,\u201d Divounguy said.<\/p>\n
If you notice homes for sale linger on the market for longer in your area, \u201cthere\u2019s probably an opportunity to get [a property] for under its listed price,\u201d Fairweather said.<\/p>\n
If you make it into the\u00a0home inspection\u00a0process\u00a0and you learn about issues that were neither noticeable during the initial walkthrough nor disclosed, it may be worth asking the home seller to do repairs, she said.\u00a0<\/p>\n
But don\u2019t overdo it: \u201cYou don\u2019t want to be nit-picky and ask for every single repair,\u201d such as chipped paint, Fairweather said.\u00a0<\/p>\n
Other markets are still in favor of home sellers as inventory remains tight, Divounguy said. Not only do many homeowners have\u00a0record home equity, they also have low mortgage payments.<\/p>\n
If a home seller needs to move this year due to upcoming\u00a0life changes\u00a0and their area is experiencing high levels of unsold listings, they may need to be prepared to cut their asking price to draw interest.<\/p>\n
\u201cPrice cuts sell homes,\u201d he said.<\/p>\n<\/p>\n
More homeowners\u00a0are listing their\u00a0homes\u00a0for sale, but properties are taking longer to sell as potential buyers face high prices and interest rates. New listings from home sellers jumped in May, up 13% from a year ago,\u00a0according\u00a0to the latest market report by Zillow. \u201cYou have an increase in sellers coming back on the market,\u201d said Orphe Divounguy, […]<\/p>\n","protected":false},"author":0,"featured_media":5382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5381"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5382"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}