US homes are selling at their slowest pace in 6 years as supply balloons
A chill has fallen over the US housing market.
The typical American home is selling at its slowest pace in six years, according to a new Redfin report.
Competition between buyers declined as the supply of homes hit a five-year high. The fresh data, first reported by Mansion Global, reveals that the post-2020 heyday of multiple offers, bidding wars and hair-trigger buyers is well and truly over.
Experts blame sluggish sales and lackluster competition on climbing supply, skittish buyers and overpriced listings. Some owners can’t hold out any longer for lower mortgage rates, the Redfin report suggested, and house hunters are feeling too much uncertainty to pull the trigger.
“Because they bought at the peak of the market, they’re overpricing their homes to try to recoup their investment,” Houston-based Redfin Premier real estate agent Alicia Grifaldo said in the report. “Sellers are competing with one another, and buyers are sparse, so pricing your listing reasonably is everything right now.”
The typical US home went under contract in March after 47 days on the market, according to Redfin.
By comparison, homes in 2022 took less than half that time. Thanks to a 14.1% year-over-year uptick in active listings, competition is cooler and bidding wars are less common. Only 27% of buyers paid above the listing price in March — the lowest March share since 2020.
Pending sales, closed sales and existing-home sales were all below pre-pandemic levels, but there was variation between markets. Homes in 17 of the 50 most populous metros surveyed by Redfin still sold within two weeks.
Tariff fears and heightened mortgage rates are making buyers nervous, the report said, and influxes of new housing in states like Texas and Florida are creating an imbalance between supply and demand.
Buyers are no longer competing with each other. It’s sellers that need to stand out.
“There’s a growing disconnect between what sellers think they can get for their homes and the direction the market is actually moving,” said Redfin Senior Economist Elijah de la Campa. “Tariff fears and widespread economic uncertainty are making homebuyers nervous, so if sellers don’t lower their price expectations, home sales may slow in the coming months.”
