Why homes are becoming stale

In real-estate a listing that has been on the market for more than 60 days is considered a “stale” listing. What usually happens to a stale listing, is that the seller removes their listing from the platform, will wait a few days, then repost it. This is supposed to then rejuvenate the listing by showing new potential buyers a more attractive figure for “days listed”, and perhaps attract a new clientele. This solution seems to properly explain the way that many people look at housing.

Polish the extractive in an attempt to make it desirable.

In Redfin’s report the blame is placed on the sellers. More than 35% of these sellers purchased their homes during covid, when demand was high and prices were soaring. Everyone wanted to get into the real estate market as an investment during a time when homes were priced at a premium. The markets have since cooled down, and those same buyers are now sellers in a market where no one wants to buy their property at the price it was once valued. Their options are now to either sell at a loss, or rent it out until they re-list it again and cross their fingers they find a desperate buyer willing to pay. Much of the blame of this type of situation that happens periodically every 10-15 years, usually falls on supply. The supply is seen as too expensive or there is not enough, but rarely are we identifying the stable demand that is happening in the background, while sellers struggle to identify the reasons their homes are not selling. The stability in housing comes when you do not look at it as a “stale listing” instead you look at it as a “stale home”. The homes that are being delisted and re-listed repeatedly are the same homes that were built without the final user in mind. They were built as if they were a stock, just with far less financial return. Since 1970, the stock market has outperformed the real estate market by 2000%.

A home is a highly emotional purchase, because it has the capacity to be one of the most important decisions you ever make.

What kind of home has stable demand? The one you buy because you can see yourself grow in it. This will allow you to build a “listing” that never goes stale, and instead of having a 3-5 year perspective on your investment, you begin to have a long term vision on the asset you are building. Finding a home like this is what makes some real estate agents indispensable. In the best case, they will be able to do the research to understand your needs and find you a suitable home. However, your needs are not easily defined, and not everyone can spot the key difference between a home that was built for longevity versus one that was built as a listing that will eventually go stale.

Next time you are searching for a place to live, make sure to double check the listing date, who built it, and why.