More houses are coming up for sale, and just sitting there

by Diccon Hyatt, Investopedia

The housing market is starting to look better for buyers as mortgage rates fall and for-sale listings increase.

Realtor.com said Thursday that the number of active listings in September was 34% higher than the same month a year ago, the most since April 2020, but still well below pre-pandemic levels. Those newly listed homes weren’t selling quickly, though: the average house sat on the market for 55 days, the longest for any September in the last five years.

How did the housing market get here?

The report showed a housing market shifting away from depressed inventory, stifled sales, and soaring prices of recent years.

With rates on 30-year mortgages hovering around 7% for much of the last year, many homeowners have been reluctant to sell and trade ultra-low rates they secured during the pandemic when the average rate got as low as 2.65%, according to Freddie Mac.

 

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