After years of housing shortages across the U.S., the inventory is finally increasing. However, the underlying reasons for this rise paint a less optimistic picture for the real estate market’s future momentum.

According to a recent report by Redfin, the number of homes for sale reached a four-year high in November, marking a 12.1% increase year-over-year. Unfortunately, the main driver of this surge is that homes are sitting on the market longer due to a lack of buyers.

More than half (54.5%) of homes listed last month had been on the market for over 60 days, with many deemed unaffordable by potential buyers. This represents a 49.9% increase compared to the same period in 2023, making it the highest percentage of “stale inventory” in November since 2019.

Homes Sitting Longer

The real estate report also highlights that the median time for homes to go under contract in November was 43 days, marking the slowest pace for the month in four years.

“A lot of listings are either stale or uninhabitable. While inventory seems high, it doesn’t feel like enough,” said Meme Loggins, a Redfin Premier real estate agent in Portland, Oregon.

“I tell sellers their homes will linger on the market if not priced fairly,” Loggins added. “Well-priced homes in good condition sell quickly—often within three to five days. But overpriced homes can sit for months.”

Regional Disparities

Texas and Florida have the highest percentages of old listings in the housing market. Miami leads among major metro areas, with 63.8% of its homes listed for over 60 days, followed by Austin at 62.4%.

Pandemic Boom to Post-Pandemic Stagnation

During the pandemic, high demand spurred a housing boom. However, soaring home prices and mortgage rates have since created an affordability crisis, sidelining many potential buyers and stagnating the market.

Housing costs continued to break records in 2024, and the affordability challenge is reflected in the declining share of first-time homebuyers. The National Association of Realtors (NAR) annual survey revealed that first-time buyers made up just 24% of the market in 2024, down from 32% in 2023—the lowest percentage since NAR began tracking the data in 1981.

Outlook

While a growing supply might signal relief for buyers at first glance, the reality remains sobering. Until affordability improves and market conditions stabilize, the housing market is likely to remain slow-moving, with many homes lingering unsold.

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(Image credit: Joe Raedle / Getty Images)