Why Are Homes Sitting on the Market Longer? Stale Listings and Pricing in 2024

Homes are taking significantly longer to sell in today's market, with the primary culprit being sellers overpricing their properties based on outdated pandemic-era expectations. According to recent data, half of all active listings in December 2024 had been on the market for 70 days or longer, the highest median time for that month since 2019. This trend, driven by higher mortgage rates and a return to a more balanced market, means sellers must price competitively from the start to avoid their listing becoming "stale."

What is a Stale Listing?

A stale listing is a property that has been on the market for an extended period without selling, often raising concerns for potential buyers. Experts define listings lingering for over 180 days as "super stale," a category that reached 24.3% of active listings in December 2024. While buyers may fear there is something wrong with the home, the overwhelming reason a listing goes stale is incorrect, typically inflated, pricing.

Why is Overpricing the Main Problem?

"Overpricing is the main culprit for listings becoming stale," says ok.com® senior economist Joel Berner. Many sellers' price expectations are anchored in the 2021-22 buying frenzy, when bidding wars were common. However, the market has fundamentally shifted. With the average rate on a 30-year fixed mortgage approaching 7%, buyer purchasing power has diminished, softening demand. Sellers reluctant to acknowledge this new reality see their homes sit unsold, often leading to eventual price reductions.

How Have Specific Markets Been Affected?

The slowdown is not uniform but is widespread. In December, the time on market increased annually in 46 of the 50 largest metro areas. Some markets are experiencing a more pronounced return to pre-pandemic norms.

In 14 major metros, including these three, the time on market has now exceeded the pre-pandemic average seen from 2017 to 2019. At the state level, 12 states—including Arizona, California, Florida, and Texas—are also seeing slower sales than in that pre-COVID baseline period.

What Practical Steps Can Sellers Take?

For a stale listing, the most effective solution is almost always a price reduction. However, before slashing the price, sellers can consider other adjustments based on buyer feedback.

• Enhance Curb Appeal: A fresh coat of paint or new landscaping can make a significant difference.
• Offer Allowances: Consider providing a credit to buyers for new flooring or other updates.
• Strategic Relisting: If a home fails to sell after six months, some agents advise taking it off the market and relisting it months later to attract a new pool of buyers.

Ultimately, adjusting the price to meet current market conditions is the fastest way to secure a sale. As one real estate agent noted, sellers who switch agents often end up taking the price reduction advice they initially resisted.

The key takeaway for sellers is that the market is normalizing, not collapsing. We are returning to a sustainable pace where it typically takes three to five months to sell a home. Pricing competitively from the outset is the most critical factor for a successful sale in this new environment.