More homes on the market are going stale due to this big listing mistake

More homes for sale are going “stale” after sitting on the market for months, raising concerns that some sellers are overestimating what the market is willing to pay.In December 2024, half of all active listings had sat on the market for 70 days or longer, up from 61 a year earlier, and the longest median time on the market for December since 2019.Worse, the share of “super stale” listings that have languished on the market for more than 180 days is also creeping up, hitting 24.3% last month, the highest percentage for a December since 2020.Stale listings can raise red flags for buyers, who may fear that there is something wrong with the home.However, experts say the primary reason listings go stale is simply incorrect pricing.“Overpricing is the main culprit for listings becoming stale.

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,” says Realtor.com senior economist Joel Berner.“Sellers can see what their neighbors got for their homes during that period and are reluctant to list for less, leading to their homes sitting on the market for longer and eventually needing to receive price reductions to finally sell,” he adds.While home prices are still growing at a national level, they are doing so much more slowly than during the post-pandemic buying frenzy, when mortgage rates were less than half of where they now stand.In some markets, prices are essentially flat or declining on an annual basis, posing a harsh new reality for sellers who have become accustomed to skyrocketing valuations.“Realizing that your home is worth less on the market than it was a few years ago is a tough pill to swallow, but sellers must accept the new normal if the pace of sales is to pick back up,” says Berner.Last month, time on the market rose compared with last year in 46 of the 50 largest metro areas, up from 42 in November.Median days on the market increased the...