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Full Report

June 2024 Real Estate Market Update   Written By: Ivan Marquez Executive Assistant, Hum Real Estate

FULL REPORT

This month, we’re breaking down the key trends shaping the real estate market in 2025, from rising inventory and shifting days on market to pricing and the growing number of expired listings.

Inventory

Inventory is rising across the country, but it depends on the region. The Midwest and Northeast are up from last year but still below pre-2020 levels. Meanwhile, the South and West now have more homes for sale than before the pandemic, giving buyers more options.

Since 2018, the U.S. has faced a housing shortage due to slowed construction after the 2008 crash. Although 2023 marked the lowest point, the supply is slowly improving, and the gap is expected to narrow by 2025.

Tallahassee’s housing inventory dropped from 3.7 months in January to just 2.2 months by March and April, before slightly increasing to 2.4 months in May. This low supply means less competition for sellers, creating a more favorable market for listing a home.

House Pricing

According to the National Association of Realtors, many sellers are cutting prices, 4 in 10 homes sold below the asking price, and a third required a price drop. With rising inventory, more listings are also expiring, showing a clear shift in the market.

Since early 2021, median asking and sales prices have moved closely together, remaining relatively stable until now. In recent months, asking prices have jumped while sales prices have stayed flat, creating a noticeable gap. This suggests many homes are being priced too high and failing to sell, often ending up as expired listings. It’s a strong reminder of how critical proper pricing is in today’s market.

Expired Listings

Across the country, homes are staying on the market longer. Looking at data from May over the past few years, the median days on market have been rising steadily since 2021.

At the same time, the number of active listings has also increased. In fact, the country recently passed over one million active listings. With more inventory available, it is taking longer for homes to sell.

Existing home sales have dropped compared to the busy years of 2021 and 2022. The main reasons are affordability challenges, economic uncertainty, and buyers holding off on making a move.

When you combine slower sales with rising inventory and longer days on market, the result is more expired listings. In today’s market, if a home is not priced correctly, it is more likely to sit and eventually expire.

Bottom Line

The housing market is changing. With rising inventory, longer time on market, and more price cuts, sellers need to price their homes carefully. Slower sales and economic uncertainty add to the challenge. Understanding local trends is key to making smart real estate decisions.