Housing supply jumps to 4-year high – but it's not all great news

Published On Dec 31, 2024, 1:07 PM

The U.S. housing supply has reached its highest level in four years, with a 12.1% increase year-over-year reported by Redfin. This surge is largely attributed to homes remaining unsold for extended periods, with over half of the listings sitting on the market for more than 60 days. Many homes are considered overpriced, contributing to a stagnation in the market. The ongoing affordability crisis is suppressing buyer interest, which is evident as first-time homebuyers share has dropped to the lowest level since 1981. Overall, while supply is increasing, the reasons behind this rise indicate potential challenges ahead for the housing market.