The Housing Market’s Mixed Bag: A Surge in Supply, But Is It Worth Buying?

The housing market is wrapping up 2024 with a bittersweet outlook. On the one hand, active listings have reached their highest level since 2020, marking a 12.1% increase from November 2023. On the other, much of that inventory isn’t exactly flying off the shelves—over half of the homes listed have sat idle for at least 60 days​.

Stale Listings in a Hot Market
While there’s more supply, a significant share of these properties is either overpriced or in poor condition. According to Redfin agent Meme Loggins, the homes that are well-priced and in good shape are getting snapped up within days, but sellers expecting top dollar for subpar properties may see their listings linger for months​.

Rising Costs, Rising Challenges
Mortgage rates above 7% and home prices still climbing (+3.6% year-over-year in October) haven’t made life any easier for buyers. First-time buyers and those looking to upgrade are grappling with the highest inflation-adjusted homeownership costs in decades​.

Adding to the conundrum is the “seller lock-in effect,” where homeowners cling to their low-interest mortgages instead of moving. While some relief came in 2024 due to life events or cashing out equity, the inventory boost barely dented overall sales​.

Looking Ahead to 2025
While pending home sales rose in November—the highest in two years—they’re still recovering from a very low base. With interest rates unlikely to drop anytime soon, buyers seem to have adjusted their expectations. According to the National Association of Realtors, consumers are leveraging the current supply surplus to negotiate better deals, shifting the market dynamics slightly away from sellers’ favor​.

The Bottom Line
​The housing market heading into 2025 feels like an unsatisfying buffet: plenty to choose from, but much of it unappetizing. Unless sellers recalibrate their pricing and the broader economic environment eases up, this stale supply trend could persist well into the new year. For now, the dream of homeownership remains a costly proposition for many.