A First Since the Pandemic: Stale Home Listings

More homes are staying on the market for longer, creating more “stale” options and for now, an inability to determine if the US is in a buyers’ market or sellers’ market, according to a report from Redfin this week about July’s listings.

Homes that were listed for 30 days or longer without going under contract increased 12.5% in July from a year earlier – the first year-over-year increase in such homes since the pandemic. Put another way, 61.2% of for-sale homes were on the market for at least 30 days, up from 54.4% a year earlier.

New York City-based real estate attorney Pierre Debbas tells GlobeSt.com that there is no sense of urgency now in the housing market.

“We are in a transitional market where unless they have to move, the majority of consumers will take a wait and see approach.

“The Fed does everything in extremes. They print money in extremes and then hike up rates in extremes; and usually when an extreme measure is taken, there is a correction of that. Many consumers are now waiting to see if a correction will take place in interest rates before proceeding, and if not, for pricing to adjust and reflect the new reality.”

Longer Stays on the Market Favor Buyers

Redfin deputy chief economist Taylor Marr said in prepared remarks, “Homes sitting on the market longer is a point in buyers’ favor.

“Buyers can take their time making careful decisions about homes without worrying so much about bidding wars, offering over the asking price and waiving contingencies. It’s a different story for sellers, who have spent the last two years hearing about their neighbors’ homes getting multiple offers the day they go on sale. 

“Now they need to price lower and get back to the basics of selling a home, like staging and sprucing up painting, to get buyers’ attention.”

Scott Harris, Brown Harris Stevens, tells GlobeSt.com, “A 12% increase in time-on-market could mean going from 98 days to 110 days. We have been in an extraordinary seller’s market, if things calm down a little, it means that buyers who take longer to make decisions will be able to be more successful.

“It may make for price softening here or there, too. But overall, it just means a shifting market where agents will have to work slightly harder to bring buyers and sellers together.”

A ‘Lack of Good Inventory’

Harris said inventory levels have remained low in the New York City market, regardless, and buyers still complain about a lack of good inventory. 

“The main reason properties get stale is still largely driven by pricing,” he said.

Nada Rizk of The Greene Rizk Team at Brown Harris Stevens tells GlobeSt.com, “The New York market didn’t participate in the major price increase and uptick that the rest of the states witnessed. We had a record year in terms of activity and closings in 2021, but it wasn’t necessarily a seller’s market all across.

“We might not be getting the full picture if we compare current data to last year’s data since it was such an unusual year. Over the years, the summers are always slow times for New York real estate, and we think this is particularly true for this summer with many people travelling after a two-year lockdown. It will be interesting to see how the last quarter unfolds.”