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The US housing market is seeing more inventory pile up as would-be buyers remain reluctant amid elevated prices.
That's according to the latest analysis of Redfin listings, which shows US housing supply climbed to a four-year high last month, with active listings rising 0.5% from the month before and over 12% on a year-over-year basis.
The supply surge comes as homes are sitting on the market for longer.
Around 55% of listings in November were on the market for at least 60 days without going under contract, making up the highest share for any November since 2019, Redfin says.
For homes that did go under contract in November, it took an average of 43 days, marking the slowest November pace since 2019.
Buyers have long complained of high prices and mortgage rates, both of which have edged down from their peaks. Those conditions have stalled homebuying activity, as affordability remains a major issue.
Would-be buyers are instead staying locked into low rates at their current homes or continuing to rent.
"There's a lot of inventory, but it doesn't feel like enough," Redfin real estate agent Meme Loggins said.
"I explain to sellers that their house will sit on the market if it's not fairly priced. Homes that are priced well and in good condition are flying off the market in three to five days, but homes that are overpriced can sit for over three months," Loggins added.
Florida and Texas, in particular, are seeing a surge in stale inventory amid a boom in homebuilding, Redfin's data shows.
In Miami, 63.8% of listings in November sat on the market for 60 days or longer, marking the highest share among top metros, followed by Austin, Texas and Fort Lauderdale, Florida.
At the same time, rising homeowners association fees, high insurance costs, and increasingly destructive natural disasters are deterring buyers from Florida.
The state saw the biggest increase in stagnant inventory year-over-year, Redfin says.
Other indicators, though, have pointed to a potential end to the housing market's lock-in effect.
Total single-family home sales in the US recently turned positive for the first time after 39 months of declines, signaling the end of the housing bear market, a recent note from Ned Davis Research said.
Pending home sales, meanwhile, increased for a fourth consecutive month in November to the highest level since early last year, according to data from the National Association of Realtors.
