US homes are selling at their slowest pace in 6 years

A shift in the US housing market

Recent data from Redfin indicates that the US housing market is experiencing a slowdown. Homes are now taking longer to sell, with the average American home selling at its slowest pace in six years.

Competition among buyers has decreased as the supply of homes has reached a five-year high. The era of multiple offers and bidding wars seems to be a thing of the past as sellers are facing challenges due to climbing supply, hesitant buyers, and overpriced listings.

According to experts, some sellers are struggling to adjust their expectations as they try to recoup their investments, resulting in overpriced listings. Buyers are cautious and uncertain, leading to a decrease in sales activity.

“Sellers are competing with one another, and buyers are sparse, so pricing your listing reasonably is everything right now,” said Alicia Grifaldo, a Redfin Premier real estate agent based in Houston.

In March, the typical US home spent 47 days on the market before going under contract, a significant increase compared to previous years. The rise in active listings has led to reduced competition and fewer bidding wars. Only 27% of buyers paid above the listing price in March, the lowest share since 2020.

Pending sales, closed sales, and existing-home sales are below pre-pandemic levels, with variations observed across different markets. While some homes in major metros continue to sell quickly, overall market activity has slowed down.

Concerns over tariffs and rising mortgage rates have contributed to buyer hesitation, while an influx of new housing in certain states has created an imbalance in supply and demand.

Buyers are no longer facing intense competition, shifting the focus to sellers who need to differentiate their properties in a competitive market.

“There’s a disconnect between sellers’ price expectations and the current market direction,” said Redfin Senior Economist Elijah de la Campa. “If sellers don’t adjust their prices to reflect market conditions, we may see a further slowdown in home sales in the coming months.”