Why are homes selling every minute despite headlines of a slowdown

Why Homes Are Selling So Fast Despite Reports of a Slowdown

Despite headlines describing a cooling real estate market, many homes are still selling at a rapid pace—and here’s why:

1. More Inventory Means More Movement

• The number of homes for sale has risen sharply, up about 20% year-over-year nationwide, and even higher in some regions like Los Angeles and the West Coast.

• This increase gives buyers more options, resulting in greater transaction volume even as individual properties may take longer to sell or undergo price cuts.

2. Pent-Up Demand Remains Strong

• Many buyers delayed their home searches in 2023–2024 due to high mortgage rates or uncertainty. Now, with slightly lower mortgage rates and more choices, that demand is re-entering the market.

• Mortgage purchase applications have recently spiked, and home touring activity is up, reflecting lively buyer interest even while total sales numbers slow or flatten.

3. Consumer Mindset Shift: Accepting the "New Normal"

• Buyers appear to be adjusting to persistent high mortgage rates (hovering in the 6–7% range) and are no longer waiting for dramatic drops before making moves.

• Life events like job changes, marriage, or needing more space are continuing to drive transactions, regardless of broader market anxiety.

4. Headlines Highlight the Slowdown—But the Full Story Is Complex

• While some markets do have more homes sitting unsold or staying longer on the market, desirable and well-priced homes are still moving quickly—sometimes with multiple offers.

• There’s a “split market”: Homes that are updated, attractively priced, or in popular neighborhoods are snapped up, while overpriced or less appealing listings linger.

5. Price Adjustments Are Fueling Activity

• Sellers are reducing prices more frequently (over 20% of listings have cuts), making opportunities more attractive for deal-seeking buyers and contributing to ongoing sales.

Key Takeaway

Despite reports of a slowdown, the combination of increased inventory, pent-up demand, a shift in buyer psychology, and more realistic pricing means homes continue to sell at a brisk pace for those well-positioned in the market. The headlines don’t always reflect the nuanced, neighborhood-level dynamics that drive daily sales activity.