July sees first year-over-year increase in homes listed for 30+ days since the beginning of the pandemic.

The share of U.S. homes that were listed for 30 days or longer without going under contract increased 12.5% in July from a year earlier, according to a new report from Redfin. In other words, 61.2% of for-sale homes were on the market for at least 30 days, up from 54.4% a year earlier. That’s the first year-over-year increase in “stale” housing supply since the beginning of the pandemic and close to the biggest uptick in Redfin’s records, which go back to 2012. The only time it increased more (13.9% YoY) was in April 2020, when the housing market nearly ground to a halt. For this report, “stale” refers to homes that were on the market for at least 30 days without going under contract, according to Redfin data. Homes staying on the market longer is a reflection of the housing market slowing in response to 5%-plus mortgage rates and a shaky economy. Rates shot up quickly in the first half of 2022, reaching 5.8% in June before dropping slightly to an average of 5.4% in July. It has taken several months of buyers backing off and sellers rushing to list their homes before the market cools further to culminate in inventory piling up. The uptick in stale inventory is one reason why the supply shortage is easing: The total number of U.S. homes for sale was up 4% year over year in July, the biggest increase since mid-2019. That’s largely due to homes staying on the market longer; the number of new listings was down 6%.

Source: Redfin