In recent developments, nearly half of the homes listed for sale across the United States have lingered on the market for over 60 days, as disclosed by Redfin, a prominent real estate brokerage. This trend persists despite a reduction in Federal Reserve rates. For August, 48% of listings failed to sell within two months, an uptick from last year’s figure of 43.2%. This period marks the fifth consecutive month witnessing a rise in the proportion of unsold properties, Redfin reported on September 25.

Sheharyar Bokhari, a senior economist at Redfin, expressed that typically, a decline in mortgage rates would invigorate home sales. Contrarily, this year has seen a downturn in sales and properties remaining on the market for extended periods. “The Federal Reserve’s substantial rate cut last week should bolster buyer confidence,” Bokhari noted. “Yet, it’s uncertain if this will significantly hasten sales as we enter the traditionally slower fall season.”

On September 18, the Federal Reserve announced its first rate cut in four years—a decrease by half a percentage point to between 4.75% and 5%. Moreover, Redfin’s data showed that approximately 70% of homes stayed unsold for a month or more. On average, homes awaited sale for 37 days; however, this duration varied significantly by location.

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10

Seattle saw properties moving fastest with homes going under contract within just 12 days. Following closely were Indianapolis (16 days), Warren Michigan (17 days), San Jose California (18 days), and Oakland California (20 days), each experiencing slight increases from the previous year.

Conversely, Florida metros witnessed notably slower sales; West Palm Beach recorded a median of 79 days to sale followed closely by Fort Lauderdale (75 days), Jacksonville and Miami both at (65 days). Austin Texas also fell into this slower category with homes taking around 65 days to sell.

Redfin attributes Florida’s sluggish pace partly to an upsurge in new constructions aimed at accommodating pandemic-driven migration inflows—now stagnating as migration levels off and with heightened insurance and homeowners’ association fees dampening buyer interest.

August saw a dip in new single-family house sales by 4.7% from July according to U.S Census Bureau estimates published on September 25th—the median sales price being $420600 while average prices reached $492700 amid a supply capable of lasting 7.8 months at current sales velocities.

CLICK HERE TO READ MORE FROM THE THE DUPREE REPORT

Freddie Mac highlighted that the week ending September 26 saw some of the lowest mortgage rates in two years: The conventional thirty-year fixed-rate mortgage fell to 6.08%, with fifteen-year rates at 5.16%.

“This downtrend in rates is revitalizing refinancing activities offering numerous homeowners opportunities to reduce their monthly payments,” Freddie Mac stated. Prospective buyers remain watchful hoping for further rate reductions as forthcoming economic data unfolds.

Despite lower mortgage rates and increased inventory theoretically favoring buyers, potential purchasers stay wary amid ongoing political uncertainties and broader economic concerns—factors becoming increasingly pivotal as housing affordability surfaces as critical discourse in upcoming electoral debates.

Lastly, improvements were observed in homebuyer affordability conditions for the fourth straight month—attributed to diminishing mortgage rates coupled with ascending incomes and moderated home price growth—offering prospective buyers some relief amidst turbulent times according to Edward Seiler associate vice president at MBA’s associate vice president reflecting on Mortgage Bankers Association’s findings that showed a national median mortgage application payment reduction from $2140 in July to $2057 last month.

What factors do you think are contributing to the prolonged time homes are staying on the market, despite lower mortgage rates? Do you believe this trend will continue, or will the recent rate cuts and improved affordability conditions eventually stimulate quicker sales?

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10