More homes are lingering on the market longer than expected, raising concerns that some sellers are overpricing their properties. If you're thinking about selling your home, avoiding this costly mistake could make all the difference in securing a successful sale.
Homes Sitting Longer on the Market
Recent data reveals that in December 2024, half of all active listings sat on the market for 70 days or longer—the longest median time for a December since 2019. Even more concerning, 24.3% of homes were classified as “super stale,” meaning they had been on the market for over 180 days. Buyers often view these listings with skepticism, assuming there’s an issue with the property. However, experts point to a simpler explanation: incorrect pricing.
The Overpricing Trap
According to Joel Berner, a senior economist at Realtor.com, overpricing is the leading cause of stale listings. Many sellers still have expectations rooted in the buying craze of 2021–22, when home prices surged due to high demand and low mortgage rates. Now, with mortgage rates nearly double what they were back then, buyers are more cautious, and sellers must adjust their pricing strategies accordingly.
“Realizing that your home is worth less than it was a few years ago is tough, but sellers must accept the new normal,” says Berner. Pricing a home based on past market peaks rather than current conditions can result in extended listing times and eventual price reductions.
Where Homes Are Sitting the Longest
The trend of rising time on the market is widespread, with 46 of the 50 largest metro areas experiencing an increase. The most significant jumps in median days on the market occurred in:
- Nashville, TN (+22 days)
- Orlando, FL (+21 days)
- Rochester, NY (+21 days)
Additionally, 12 states, including Florida, Texas, and California, are now seeing homes sit on the market longer than during the pre-pandemic years of 2017–19.
The Role of Higher Mortgage Rates
Mortgage rates, which briefly dipped close to 6% last fall, are now approaching 7% again, reducing buyers’ purchasing power. Berner notes that these high rates have weakened demand, leading to slower sales and an increasing number of stale listings. In response, sellers will need to price their homes more competitively to attract buyers.
Adjusting to a Normal Market
While some may see the rising share of stale listings as a cause for concern, experts suggest it signals a return to a more typical real estate market. Historically, it has taken three to five months to sell a home, compared to the ultra-fast sales seen during the post-pandemic boom.
“We’re getting back to a normal market,” says Brian Stephens, a Florida-based real estate agent. “Homes won’t fly off the market in a week anymore, and that’s okay.”
What Sellers Can Do to Avoid a Stale Listing
If your home has been on the market for months without offers, consider these strategies:
- Reevaluate the Price: Buyers are more price-sensitive than ever. A reduction might be necessary to attract serious offers.
- Improve Curb Appeal: Simple updates like fresh paint or landscaping can make a significant difference.
- Offer Incentives: Consider providing a flooring allowance or covering some closing costs to entice buyers.
- Relist Strategically: If your home has been on the market for over six months, temporarily removing it and relisting later may bring in fresh buyer interest.
In some cases, if a home isn’t selling, changing listing agents may also be a smart move. As Stephens points out, “Sellers often don’t want to hear that their price is too high—but when they switch agents, they finally accept it and make the change.”
Stay Ahead of the Market
To successfully sell in today’s market, it’s crucial to stay informed and flexible. By pricing competitively and adjusting to shifting buyer trends, you can avoid the pitfalls of a stale listing and achieve a successful home sale.
If you have any questions or need guidance on selling your home, feel free to reach out to me!