A significant shift in the real estate market has been observed as a growing number of homes are failing to sell within a month, a stark contrast to the situation just a few years ago. Local realtor Heather Spinosa, based in Tampa, Florida, highlighted the change, stating that she currently has approximately 15 properties on the market, whereas previously her phone would be constantly ringing with interested buyers. However, the current market conditions have prompted Spinosa to inform sellers about the slower pace of sales.
Data from real estate company Redfin reveals that in June, 64.7% of homes listed for sale remained on the market for at least 30 days without securing a contract. This figure represents an increase from 59.6% recorded a year ago. The main contributing factors to this trend are higher prices and mortgage rates. Redfin experts suggest that sellers need to price their properties fairly and undertake cosmetic repairs before listing them in order to attract potential buyers.
To address these challenges, Redfin has introduced an AI-powered tool called Redfin Redesign. This tool offers assistance to sellers and buyers looking to renovate by providing suggestions related to paint color, lighting, and furniture placement. Jason Aleem, Redfin’s chief of real estate services, emphasized the importance of preparing a home to make it more appealing to buyers. He stated that a well-prepped home often stands out and sells better within its neighborhood or street. Aleem described Redfin Redesign as a “magic trick” that enables users to visualize potential investments and personalize their homes.
However, selling a home successfully requires more than just technological assistance, as Florida homeowner Chris Weston discovered. Despite investing $25,000-$30,000 in updates and lowering the price, Weston reported only one potential buyer showing interest in his property.
In addition to utilizing tools like Redfin Redesign, Zillow recommends small curb-appeal projects to enhance the attractiveness of a property. These projects can significantly impact a buyer’s first impression.
Florida and Texas are experiencing the largest increases in unsold housing inventory, according to Redfin. As of now, Redfin Redesign is available for approximately 210,000 for-sale listings. However, Redfin aims to expand the service to reach a wider user base.