New evidence suggests a surge in housing options is discouraging potential buyers due to escalating price tags. According to Redfin, a prominent real estate data firm, the count of homes listed for sale in December 2022 saw an increase of 9.7% compared to that of the previous year. This increase was primarily driven by a 7.7% rise in fresh listings. This surge in active listings had even outreached their highest levels in the preceding four years, as seen in November.
However, the influx of listings was not necessarily positive news for the struggling housing market. Many of these properties were considered overpriced, leading these less appealing listings to gather dust on the market, according to Redfin's data journalist Lily Katz. Meme Loggins, a real estate agent at Redfin Premier in Portland, Oregon asserts, "Homes that are overpriced may remain on the market for over three months, whereas well-priced, good condition homes can sell in as quickly as three to five days."
Data from December indicated that contrary to the previous year, fewer homes were sold within two weeks and at a price above the listing. The median number of days a property remained listed on the market had risen by six to 47 days. This could potentially be due to prospective buyers considering the higher prices. The median sale price in December was up 6.4% year-over-year to $383,750 according to Redfin data; marking the greatest surge since Autumn 2022.