Despite a recent drop in mortgage interest rates, homebuyers appear to be holding out for lower prices. A report from housing market platform Redfin shows nearly half of homes listed for sale in August stayed on the market for at least 60 days, the highest rate since 2019. This figure has risen from 43.2% a year ago, marking the fifth consecutive month of annual increases.
In August, the typical U.S. home took 37 days to go under contract, six days longer than the previous year. However, this varied across regions, with homes in Seattle selling the fastest, averaging 12 days on the market, followed by Indianapolis, Warren, Mich., San Jose, Calif., and Oakland, Calif.
“We usually see home sales pick up when mortgage rates fall, but this year we are seeing the opposite—sales are dropping and homes are sitting longer on the market,” said Redfin Senior Economist Sheharyar Bokhari. “Last week’s big interest rate cut by the Federal Reserve will give buyers a boost in confidence, but it remains to be seen whether sales will speed up in any meaningful way as we move into the slower Fall season.”
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