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Yahoo
5 hours ago
- Business
- Yahoo
What causes a 'stale' home listing? How buyers can use it to their advantage
Homebuyers know the feeling all too well: You're several months into your home search, and the properties you're interested in are selling at lightning speed. But there's that one home that's been sitting on the market since you started looking. Buyers pay close attention to the number of days a home has been listed for sale. And more often than not, once a property becomes a "stale listing," it is more undesirable to buyers the longer it sits on the market. "Buyers start their search a year out. They're very well educated on the market and inventory these days," said Padraic Gallagher, founder and managing broker of Story Residential at Compass in Hoboken, New Jersey. "And so, when they see a property and then continue to see it not moving as they look over time, there's a stigma attached to that property." Buyers may assume there's something wrong with these properties, especially in a market where things tend to sell quickly. But that's not always the case, and these homes may present a unique opportunity to otherwise struggling homebuyers. What is a stale listing? A stale listing is a home that has been on the market for an extended period of time without receiving any serious offers. The amount of time varies depending on the market and how fast other similar listings have sold. "A stale listing is usually considered to be a property that's sitting on the market past the average days on market. Every type of property has a different average days on market," Gallagher said. "But a stale listing would be one that's on for longer than previous comparative listings." There are exceptions to this, though, such as for luxury properties that tend to sit longer because they appeal to a smaller group of buyers. There once was a time when the average home could be listed on the market for as long as two to three months, or even longer, before it would be considered stale. Steven Finkelstein, a broker-associate with Russo Real Estate in Teaneck, New Jersey, said this was the standard prior to the pandemic. In case you missed it: Why America's housing is pulling further out of reach. See the report "There's no doubt we've gotten very spoiled over the last couple of years now. Because of the lack of supply, we've gotten offers within a week or sometimes days after an open house," he said. "Under normal circumstances, it would not be surprising if a home sat on the market for at least a month before getting an offer. And during those times, we would consider something stale if it was on the market for maybe two or three months." What causes a stale listing? Listings can become stale due to there being something inherently wrong with the property, such as major structural issues, which is what buyers typically assume is the case. But more often than not, Gallagher said, the biggest culprit of stale listings is overpricing. He said that regardless of how nice a property is, buyers will not be interested if they believe it's listed for more than it's worth. This also applies to listings where the seller raises their price after seeing a neighbor's house sell for more, he said, because it leads buyers to believe the seller could be "unreasonable." "We're also definitely seeing more inventory come out, which is also a change right now because suddenly some of the prices that made sense over the last several months need to be adjusted to suit the demand and the rising inventory that we're seeing," Finkelstein said. The timing in which a property is listed can also contribute to this, Finkelstein said. While properties are sold throughout the year, homes sell faster during the spring season, historically the busiest time for real estate. Other common factors are that the property is situated in what's viewed as an undesirable location, or it's in need of some cosmetic upgrades. Poor marketing, or a lack of photos and information, can also discourage buyers from considering a certain home listing, both Gallagher and Finkelstein said. What a stale listing means for buyers and seller While buyers may want to stay away from listings that have become stale, Finkelstein recommends not counting these properties out of your search just because of how long they've been listed. "If the price is the number one issue it could be an opportunity for them to possibly negotiate the price down," he said. "The seller might also be more apt to accept an offer that they otherwise wouldn't. In terms of accepting an offer, cash is the number one position and then we go into mortgages, with a conventional mortgage being more desirable than maybe an FHA loan or a VA loan. The seller may be more apt to pick some of the other types of loans, be more open-minded to taking a smaller down payment, be more open to a buyer's concession or more willing to loosen up some terms." He also said that every buyer views a property with a different set of eyes, with some people prioritizing a move-in-ready space while others may have a vision for how they can upgrade a home. So just because others couldn't see a home's potential doesn't mean it's not the home for you. On the other end, Finkelstein said sellers who find themselves in this position need to evaluate what they did wrong in the process, or if they were guided in the wrong direction by the agent. In addition to looking at the pricing, he said they should consider whether they need to make repairs that they initially weren't willing to do, or change the staging and marketing, to increase buyer interest. "If a house is sitting on the market, a seller has to be realistic as well to say that their strategy isn't working," he said. Gallagher said this shows why it's important for sellers to work with an agent that is knowledgeable about construction and home improvement. In situations like this, he said they can help identify improvements or modifications sellers may need to make in order to make the listing more desirable. "Everyone's situation is different, so one person might be looking at a house as needing a big renovation while another person might think it's the perfect opportunity to get in and build equity. Or maybe the location is a big step up for someone who is in an otherwise bad location, while another person can afford to be more fussy," Finkelstein said. "All it takes it one buyer." Maddie McGay is the real estate reporter for and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@ This article originally appeared on Stale listings explained: The hidden opportunities for smart buyers
Yahoo
a day ago
- Business
- Yahoo
Average long-term US mortgage rate eases to 6.74%, keeping home loan borrowing costs elevated
The average rate on a 30-year U.S. mortgage eased this week, offering little relief for prospective homebuyers facing record-high home prices. The long-term rate slipped to 6.74% from 6.75% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.78%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased. The average rate dropped to 5.87% from 5.92% last week. A year ago, it was 6.07%, Freddie Mac said. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Elevated mortgage rates have been weighing on the U.S. housing market, which has been in a sales slump going back to 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Sales of previously occupied U.S. homes, which sank to their lowest level in nearly 30 years in 2024, have remained sluggish this year as rising home prices and stubbornly high mortgage rates have made homeownership financially untenable for many Americans. Elevated mortgage rates are also discouraging many homeowners from selling because they locked in mortgage rates when they were much lower. Mortgage rates are influenced by several factors, from the Federal Reserve's interest rate policy decisions to bond market investors' expectations for the economy and inflation. The main barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.41% at midday Thursday, down from 4.40% late Wednesday, following the latest signals that the U.S. economy seems to be holding up OK despite all the pressures on it from tariffs and elsewhere. Yields have moved higher for most of this month as traders bet that the Fed will hold its key short-term interest rate steady at its upcoming meeting next week, despite President Donald Trump demanding that the Fed to lower rates. A less independent Fed could mean lower short-term rates, which influence the interest consumers pay on credit cards and auto loans, but it could have the opposite effect on the longer-term bond yields that influence the rates on home loans. The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, set in mid-January. The 30-year rate's low point this year was in early April when it briefly dipped to 6.62%.
Daily Mail
a day ago
- Business
- Daily Mail
House price DROP imminent across all of America: Sales collapse at highest rate on record... with these cities at epicenter
Buyers are walking away from home purchases in record numbers, causing complete chaos in the US housing market. In June, over 57,000 home sales across the country were abruptly canceled, equaling a staggering 14.9 percent of homes that went under contract, according to a report from Redfin.
Associated Press
a day ago
- Business
- Associated Press
Average long-term US mortgage rate eases to 6.74%, keeping home loan borrowing costs elevated
The average rate on a 30-year U.S. mortgage eased this week, offering little relief for prospective homebuyers facing record-high home prices. The long-term rate slipped to 6.74% from 6.75% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.78%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased. The average rate dropped to 5.87% from 5.92% last week. A year ago, it was 6.07%, Freddie Mac said. Elevated mortgage rates have been weighing on the U.S. housing market, which has been in a sales slump going back to 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Sales of previously occupied U.S. homes, which sank to their lowest level in nearly 30 years in 2024, have remained sluggish this year as rising home prices and stubbornly high mortgage rates have made homeownership financially untenable for many Americans.
Yahoo
a day ago
- Business
- Yahoo
Best housing markets for first-time homebuyers
Best housing markets for first-time homebuyers Affordability is just one component of buying a new home. Hopeful first-time homebuyers would be prudent to consider the competitive landscape, lifestyle, social and future growth potential of their home. Taking on such a large investment, particularly when the costs of homeownership may outpace the costs of renting in some places, requires planning ahead in terms of your career and family, as well as your budget. With this in mind, SmartAsset ranked 180 of the largest U.S. metro areas based on a variety of factors that may influence the buying process and long-term payoff for first-time homebuyers. These metrics include affordability relative to local median incomes, the level of housing inventory and demand for that inventory, projections of home-price growth, and the relative population of residents in their 20s and 30s. Key Findings McAllen, TX is the best metro area for first-time homebuyers in 2025. After ranking fourth last year, McAllen has replaced Lawton, OK as the number one metro area for hopeful homeowners. In particular, it offers positive projected home-price growth over the next year, moderate affordability with the median sale price of $204,499 being about four times as much as the median local income, and a market that allows potential buyers to take their time to make a decision before putting in an offer. Midwestern metros have the most affordable homes relative to local incomes. Peoria and Decatur, IL rank first and second in the affordability metric, with local home sale prices averaging about twice the amount of the median annual income. Davenport, IA; Springfield, IL; Lawton, OK; Cedar Rapids, IA; St. Joseph, MO; and Muncie, IN metros are also among the least expensive. However, only the Lawton, OK metro makes the top 10 best metros for first-time homebuyers when considering other metrics. Homes are on the market for less than a week in these metro areas. Bloomington, IL and Rockford, IL homes average just five days on the market before they go under contract, making it a competitive landscape for first-time homebuyers. The average days til pending is also just six days in the Ann Arbor, MI; Cincinnati, OH; and Springfield, IL metros. These Florida metro areas have some of the highest inventory. Cape Coral has more than double the amount of homes per sale per local resident as Port St. Lucie, which ranks second in this metric. Also among Floridian metros with the highest inventory are Jacksonville, Lakeland and Tampa. Top 20 Places for First-Time Homebuyers 1. McAllen, TX Median sale price: $204,499 Median household income: $56,655 Income to sale-price ratio: 27.70% Days to pending: 64 Inventory: 3,488 Inventory per capita: 0.003882151 One-year price change forecast: 40.0% Percent aged 25 to 39: 20.02% 2. Lawton, OK Median sale price: $150,007 Median household income: $59,843 Income to sale-price ratio: 39.89% Days to pending: 25 Inventory: 493 Inventory per capita: 0.003891481 One-year price change forecast: -110.0% Percent aged 25 to 39: 23.37% 3. Killeen, TX Median sale price: $253,104 Median household income: $74,976 Income to sale-price ratio: 29.62% Days to pending: 45 Inventory: 3,029 Inventory per capita: 0.00604188 One-year price change forecast: -100.0% Percent aged 25 to 39: 23.54% 4. Warner Robins, GA Median sale price: $232,822 Median household income: $79,903 Income to sale-price ratio: 34.32% Days to pending: 19 Inventory: 658 Inventory per capita: 0.003277235 One-year price change forecast: 80.0% Percent aged 25 to 39: 22.35% 5. Appleton, WI Median sale price: $296,011 Median household income: $88,651 Income to sale-price ratio: 29.95% Days to pending: 42 Inventory: 507 Inventory per capita: 0.002057354 One-year price change forecast: 130.0% Percent aged 25 to 39: 19.24% 6. Fayetteville, NC Median sale price: $255,157 Median household income: $64,636 Income to sale-price ratio: 25.33% Days to pending: 19 Inventory: 1,781 Inventory per capita: 0.004539476 One-year price change forecast: 150.0% Percent aged 25 to 39: 23.29% 7. Savannah, GA Median sale price: $353,187 Median household income: $79,392 Income to sale-price ratio: 22.48% Days to pending: 38 Inventory: 2,359 Inventory per capita: 0.005551437 One-year price change forecast: 60.0% Percent aged 25 to 39: 22.71% 8. Clarksville, TN Median sale price: $289,257 Median household income: $70,825 Income to sale-price ratio: 24.49% Days to pending: 26 Inventory: 1,475 Inventory per capita: 0.004378661 One-year price change forecast: 60.0% Percent aged 25 to 39: 24.14% 9. Cape Coral, FL Median sale price: $344,037 Median household income: $75,539 Income to sale-price ratio: 21.96% Days to pending: 59 Inventory: 20,066 Inventory per capita: 0.024043433 One-year price change forecast: -160.0% Percent aged 25 to 39: 16.35% 10. Muncie, IN Median sale price: $152,814 Median household income: $58,286 Income to sale-price ratio: 38.14% Days to pending: 12 Inventory: 293 Inventory per capita: 0.002608595 One-year price change forecast: 160.0% Percent aged 25 to 39: 18.41% 11. Peoria, IL Median sale price: $142,080 Median household income: $72,327 Income to sale-price ratio: 50.91% Days to pending: 11 Inventory: 928 Inventory per capita: 0.002563614 One-year price change forecast: -100.0% Percent aged 25 to 39: 17.89% 12. El Paso, TX Median sale price: $235,000 Median household income: $62,331 Income to sale-price ratio: 26.52% Days to pending: 30 Inventory: 3,196 Inventory per capita: 0.003664873 One-year price change forecast: 70.0% Percent aged 25 to 39: 22.11% 13. Eau Claire, WI Median sale price: $259,763 Median household income: $79,378 Income to sale-price ratio: 30.56% Days to pending: 43 Inventory: 453 Inventory per capita: 0.002590451 One-year price change forecast: 10.0% Percent aged 25 to 39: 19.75% 14. Yuma, AZ Median sale price: $306,083 Median household income: $66,397 Income to sale-price ratio: 21.69% Days to pending: 49 Inventory: 828 Inventory per capita: 0.003883295 One-year price change forecast: 180.0% Percent aged 25 to 39: 18.13% 15. Decatur, IL Median sale price: $124,945 Median household income: $61,550 Income to sale-price ratio: 49.26% Days to pending: 10 Inventory: 243 Inventory per capita: 0.002415723 One-year price change forecast: -150.0% Percent aged 25 to 39: 18.66% 16. Huntsville, AL Median sale price: $303,761 Median household income: $89,668 Income to sale-price ratio: 29.52% Days to pending: 29 Inventory: 2,254 Inventory per capita: 0.004274979 One-year price change forecast: -10.0% Percent aged 25 to 39: 20.83% 17. Youngstown, OH Median sale price: $151,734 Median household income: $54,215 Income to sale-price ratio: 35.73% Days to pending: 14 Inventory: 1,382 Inventory per capita: 0.003244368 One-year price change forecast: 100.0% Percent aged 25 to 39: 18.39% 18. Green Bay, WI Median sale price: $325,239 Median household income: $80,421 Income to sale-price ratio: 24.73% Days to pending: 40 Inventory: 791 Inventory per capita: 0.002383377 One-year price change forecast: 120.0% Percent aged 25 to 39: 18.79% 19. Jonesboro, AR Median sale price: $191,251 Median household income: $61,817 Income to sale-price ratio: 32.32% Days to pending: 38 Inventory: 738 Inventory per capita: 0.005410954 One-year price change forecast: -210.0% Percent aged 25 to 39: 20.78% 20. Syracuse, NY Median sale price: $231,720 Median household income: $77,356 Income to sale-price ratio: 33.38% Days to pending: 7 Inventory: 807 Inventory per capita: 0.001235918 One-year price change forecast: 200.0% Percent aged 25 to 39: 18.66% Data and Methodology This SmartAsset study examined 180 metro areas for which data was available. Metro areas are ranked based on four metrics, composed of: Affordability. Median sale price relative to median income. Median sale price comes from Zillow (Smooth, All Homes, Monthly) for 4/30/2025. Median income comes from the U.S. Census Bureau's 1 Year ACS. The data is from 2023, adjusted for wage growth of 5.58% through April 2025 per FRED. Growth potential. Zillow's Home Value Forecast; All Home Forecast, 1 Year; Homes (SFR, Condo/coop), smoothed. 4/30/2026 Competition. Median days to pending, Zillow. 4/30/2025 Inventory per capita Zillow: For-Sale Inventory, All Homes, Smoothed, Monthly U.S. Census Bureau 1 year ACS 2023 Social. Population aged 25-39: U.S. Census Bureau one year ACS 2023 This story was produced by SmartAsset and reviewed and distributed by Stacker. Sign in to access your portfolio
