A growing number of homes sat on the market for a month or longer in June, a big change from just a few years back.
"Right now, I have about 15 properties on the market," said Tampa-area realtor Heather Spinosa. "Before, the phone would be 'ring, ring, ring.' Now, I'm calling the seller letting them know, 'Hey, you know what? It's a little slow right now.'"
Early in the pandemic, in some areas, many homes were on the market for just days before being sold. Fast forward to this June and 64.7% of homes on the market were listed for at least 30 days without going under contract, according to the real estate company Redfin.
That's up from 59.6% a year ago.
Higher prices and mortgage rates are two main factors. Redfin experts say sellers need to price fairly to attract buyers and make cosmetic repairs before listing.
That's where Redfin experts say the company's AI-powered tool, Redfin Redesign, can come in handy.
RELATED STORY | More Americans are becoming 'house poor' due to high housing costs
"You want to really think through what's the prep work that you need to get done. How do you actually put your home in the best light?" said Redfin's chief of real estate services, Jason Aleem. "A lot of times, it's the belle of the ball that sells well, or it's the home that's best prepped on that street or in that neighborhood."
Redfin's AI tool might present sellers, or buyers looking to renovate, with changes related to paint color, lighting or furniture placement.
"This gives you the ability to kind of imagine what it would look like to make an investment," Aleem said, "to really make the home your own. I think it's just a magic trick. That's huge for home sellers and home buyers."
Of course, it takes more than magic to sell a home, as Florida homeowner Chris Weston experienced firsthand.
"We've had one perspective buyer," he said last month. "I put $25,000-$30,000 into something I've lowered the price on."
Small updates are just a start. The site Zillow recommends small curb-appeal projects like:
- Painting your front door.
- Power washing the home's exterior.
- Adding new house numbers.
- Giving your mailbox a makeover.
- Adding container plants and hanging baskets.
According to Redfin, Florida and Texas are seeing the biggest increases in unsold housing inventory. As for Redfin Redesign, the tool is available to about 210,000 for-sale listings, but Aleem said Redfin would like to expand the service to more users.
