T
he US housing market has hit a slowdown, with the typical American home taking longer to sell than at any point in six years. According to Redfin's latest report, homes are selling at their slowest pace since 2019, with inventory reaching a five-year high and competition between buyers dwindling.

    Experts blame the sluggish sales on climbing supply, skittish buyers, and overpriced listings. Many sellers are holding out for lower mortgage rates, but this is causing uncertainty among house hunters. As a result, homes are spending more time on the market, with the typical US home taking 47 days to go under contract in March.

    In contrast, homes sold within two weeks just last year. The number of buyers paying above the listing price has also plummeted, from 73% in 2022 to just 27% in March. Redfin's Senior Economist Elijah de la Campa warns that sellers need to lower their expectations, as there is a growing disconnect between what they think they can get for their homes and the actual market direction.

    Tariff fears and high mortgage rates are making buyers nervous, while an influx of new housing in states like Texas and Florida has created an imbalance between supply and demand. As a result, it's no longer buyers competing with each other, but sellers who need to stand out by pricing their listings reasonably.