T
he number of homes for sale that are languishing on the market has increased significantly, raising concerns that some sellers may be overestimating what buyers are willing to pay. In December 2024, half of all active listings had been on the market for 70 days or longer, up from 61 a year earlier and the longest median time on the market since 2019.

    The share of "super stale" listings that have sat on the market for over 180 days has also risen to 24.3%, the highest percentage in December since 2020. Experts attribute this trend primarily to sellers overpricing their homes, often based on unrealistic expectations from the pre-pandemic buying frenzy when prices skyrocketed.

    "Sellers can see what their neighbors got for their homes during that period and are reluctant to list for less," says Realtor.com senior economist Joel Berner. "This leads to their homes sitting on the market longer and eventually needing price reductions to sell."

    While home prices are still growing nationally, they are doing so at a slower pace than in previous years. In some markets, prices are flat or declining annually, posing a harsh reality for sellers who have grown accustomed to rapid price increases.

    Time on the market has increased in 46 of the 50 largest metro areas compared to last year, with median days on the market rising by 22 days in Nashville and 21 days in Orlando. In some areas, time on the market is now higher than it was before the pandemic.

    Higher mortgage rates are also contributing to the slowdown, diminishing purchasing power for buyers and leading to listings spending more time on the market. Sellers will need to adjust their pricing strategies to attract buyers.

    The median list price of homes active in December was down 1.8% from a year earlier, to $402,502. Home sales have slowed significantly, making it harder for sellers to accurately price their listings.

    Real estate experts caution that the rising share of stale listings is not necessarily a sign of impending doom but rather a return to normal market conditions seen before the pandemic. A typical active listing spent eight days less on the market in December than the average seen from 2017 to 2019.

    To sell a home quickly, sellers may need to reduce their asking price or make adjustments to the property itself, such as painting or landscaping. In some cases, it may be best for sellers to relist with a new agent who can provide fresh guidance on pricing and marketing strategies.