According to the latest data released by real estate company Redfin, high housing prices and economic uncertainty have led to homes staying on the market longer in the United States, making last month the slowest July for home sales in a decade.
The average time a typical home stayed on the market in July for homes that signed purchase agreements was 43 days, an increase of 8 days compared to the same period last year, making it the longest sales cycle for July since 2015.
The report pointed out that the extension of the home selling cycle is due to high purchasing costs and economic uncertainty leading to a shrinking demand. The inventory of homes for sale in July decreased by 1.1% compared to the previous month, dropping to its lowest level since November 2023 after seasonal adjustments. The seasonally adjusted annualized sales volume of existing homes was 4,150,266 units, the lowest level in nearly a year.
As homes linger on the market, the supply continues to increase, giving buyers more options and reducing the urgency to purchase. The active listings of homes for sale in July reached nearly the highest level in five years, but decreased by 1.1% compared to June, the largest monthly decline in about two years after seasonal adjustments. New listings decreased by 0.4% compared to the previous month, the lowest level since March 2024 after seasonal adjustments.
Redfin’s Chief Economist, Asad Khan, stated, “Supply has started to decline as potential sellers choose not to list their homes after seeing neighboring homes linger on the market or sell below asking price. Some existing sellers are also withdrawing their homes from the market to rent them out or simply delaying moving—especially if they bought during the peak of the market during the pandemic and are worried about taking a loss.”
According to Redfin’s data, in some metropolitan areas, the number of days homes stayed on the market significantly increased, with the largest increases occurring in several markets in Florida. Fort Lauderdale led the way with a 23-day increase compared to the same period last year, followed by West Palm Beach and Miami with increases of 18 days each. Kansas City, Missouri was the only metropolitan area to show a decrease, with a 6-day decrease year-on-year.
Last month, several of the slowest-selling markets in major U.S. real estate markets were in Florida, with some cities having sales cycles exceeding 90 days, including 95 days in West Palm Beach, 92 days in Fort Lauderdale, and 86 days in Miami.
Demand for home buying in Florida has decreased, as the housing frenzy sparked during the pandemic period drove up prices and triggered a construction boom. Rising insurance costs and the threat of natural disasters in Florida have also deterred buyers.
This once again demonstrates that after years of tight inventory in the real estate market, buyers are gradually gaining more bargaining power, although this advantage varies between different regions.