Competition in the housing market is cooling off. Here's why

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Homes are not selling as fast as they once were. This is causing supply to grow in some areas. Here’s what that means for you as a homebuyer or seller.

More homeowners are listing their homes for sale — but properties are taking longer to sell as potential buyers face high prices and interest rates."You have an increase in sellers coming back on the market," said Orphe Divounguy, a senior economist at Zillow.But with buyers not returning to the market, many of those new listings are just adding to inventory. The number of homes on the market rose 22% compared to last year, Zillow found.

"The market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market," said Daryl Fairweather, chief economist at Redfin. "Buyers are facing these incredibly high mortgage rates, at least relative to what they were during the pandemic," said Fairweather, who believes homebuyers might lack the motivation and financial ability to purchase a home.to 6.95% on June 13, lower from 6.99% a week prior, according to Freddie Mac data via the Federal Reserve.

In Fort Lauderdale, Florida, the share of unsold listings that have stayed on the market for at least 30 days is 75.5%, up from 68.2% a year prior, Redfin found.

 

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