Rising Housing Inventory Levels in 2024: A Closer Look
In 2024, rising housing inventory levels may not necessarily indicate a healthy market. While more inventory can be seen as a positive sign of market normalization, it also poses challenges as homes are remaining unsold for extended periods. Factors such as high home prices, increasing mortgage rates, and other expenses play a role, but there may be more to the story.
HousingWire Lead Analyst Logan Mohtashami notes that rising supply is a highlight of the 2024 housing market, with inventory levels nearing pre-pandemic levels seen in 2019. This increase in inventory, which is 27% higher compared to early 2024, could signal a return to market stability.
However, a recent report from Redfin on unsold inventory in November raises concerns. The report highlights a significant portion of homes (54.5%) remaining unsold for at least 60 days, referred to as “stale inventory.” This trend is on the rise, with homes taking longer to sell compared to previous years.
States like Texas and Florida, which saw substantial listings growth in 2024, are experiencing the highest shares of stale inventory. Metro areas like Miami, Austin, Fort Lauderdale, San Antonio, and Orlando have some of the highest percentages of unsold listings.
Real estate agents attribute the growth in stale inventory to overpriced listings that deter potential buyers. According to Redfin Premier agent Meme Loggins, homes priced competitively and in good condition sell quickly, while overpriced properties can linger on the market for months.
Another report from Redfin suggests that the increase in for-sale supply is partly due to renters staying in their rental homes longer. This trend, along with a rise in renter household growth compared to homeowners, is reshaping market dynamics.
As we look ahead to 2025, there is potential for changes in the market. If mortgage rates decline, there may be an uptick in home sales as homeowners reconsider their options. However, home prices are expected to remain steady, potentially keeping inventory levels stagnant.