The U.S. housing market is undergoing a significant transformation as an increasing number of homes linger unsold, primarily due to sellers who are overpricing their properties. This trend is particularly evident in regions like Texas, where homes are staying on the market longer than in previous years. (Realtor)
The Rise of “Stale” Listings
In December 2024, half of all active listings nationwide had been on the market for 70 days or longer, marking the longest median time since 2019. Additionally, 24.3% of listings had been active for longer than 180 days, the highest percentage since 2020. This increase in “stale” listings is largely attributed to sellers pricing too high based on the inflated market conditions of 2021–22, rather than current buyer demand. (MySA, New York Post)
Realtor.com senior economist Joel Berner notes, “Overpricing is the main culprit for stale listings. Many sellers have expectations about their home value that stem from the buying craze of 2021–22 when listing prices shot up across the country.” (Realtor)
Market Adjustments and Regional Variations
In February 2025, nearly 17% of home listings had price reductions, the highest share for any February since 2016. The South and West regions, including Texas, experienced the most significant price-cut increases, with Denver, Charlotte, and Tucson leading the trend.(West + Main)
The median listing price dipped to $412,000, a 0.8% decrease from the previous year. This decline is partly due to an increased number of smaller homes entering the market. However, the median price per square foot increased by 1.2%, indicating that while overall prices are adjusting, the value per unit area remains strong. (Realtor, ConsumerAffairs)
Shifting Seller Expectations
A survey conducted by Realtor.com and CensusWide revealed that home sellers are becoming more realistic about market conditions. Only 12% of sellers expect multiple offers, down from 27% the previous year, and just 15% anticipate offers above the asking price, a significant drop from 31% in 2023. (Realtor)
This shift reflects a broader understanding among sellers that the market has cooled, and buyers are more selective, often unwilling to engage in bidding wars or waive contingencies. (SFGATE)
Implications for Buyers and Sellers
The current market presents opportunities to negotiate better deals for buyers, as increased inventory and price reductions provide more options. Sellers, on the other hand, need to adjust their pricing strategies and expectations to align with the evolving market dynamics. (Realtor)
In regions like Texas, where the market is experiencing these shifts, buyers and sellers must stay informed and adaptable. Understanding local trends and working with knowledgeable real estate professionals can help navigate this changing landscape effectively.
If you have any questions about your current listing or are considering listing your property, I would love to hear from you to discuss your questions and concerns. Thanks for being in touch!