Homes Are Sitting: Which US Cities Now Take Months to Sell and Why It Matters

What it means:

• Luxury and highly customized homes are common culprits for higher days on market—they require a very specific buyer.
• Local market normalizing after rapid pandemic-era acceleration is reducing upside for short-term flips.

How the slowdown changes negotiation and investment tactics

This slowing market is not uniform, but it does change how we should approach deals.

For buyers and investors:

• Use months of supply and days on market as bargaining chips. Markets with more than 6 months of supply are favoring buyers.
• Watch the list-to-sale ratio. In Miami, homes sell for about 95% of list price, so start offers below list when justified.
• Factor in non-mortgage costs: insurance, HOA fees, and property taxes can change cashflow and affordability.
• Consider rents vs. mortgage payments. In some places, renting is cheaper than buying given current interest rates and sale prices.

For sellers:

• Price to the market. The report finds 23% of sellers in slow markets cut their asking price, compared with 17% nationally. Overpricing raises days on market and often yields a larger final discount.
• Improve marketability: staging, professional photos, flexible showing schedules, and targeting out-of-area buyers where applicable.
• Have a backup plan: be ready to rent or accept concessions if the property does not move within three months.

For portfolio managers and institutional investors:

• Reassess expected holding periods. Markets with 90–110 days median time on market require longer capital commitment.
• Hedge coastal insurance risk and factor in rising local taxes when modeling returns.

Risks and caveats investors must weigh

This is not a sign that the broader US housing market is collapsing. The national median days on market is 66, and many metros remain relatively balanced. Still, the risks in the slowest markets are real:

• Insurance shocks: coastal markets face sudden premium increases that can erode affordability.
• Tax exposure: high local property taxes in states like Texas can reduce net returns for investors.
• Price correction: markets that surged during COVID are correcting, which can mean paper losses for owners who bought at peak.
• Liquidity risk: higher days on market equals lower liquidity. For sellers needing quick proceeds, this can be a material problem.

Our analysis shows these risks are concentrated in pandemic-boom metros and in markets with significant new supply. Buyers who assume the old rules of bidding wars will return may be miscalculating.

Practical checklist for buyers and sellers in slow markets

Buyers:

• Verify months of supply and median days on market for your target neighborhood.
• Calculate total housing cost including insurance and HOA fees.
• Use inspection contingencies and appraisal-based offers when you have leverage.
• Consider converted contingency timelines to allow sellers more time to close if you want the property at a discount.

Sellers:

• Price at or slightly below current comps if speed is a priority.
• Prepare to reduce price: the report shows 23% of listings in slow metros were reduced.
• Improve listing exposure to out-of-area buyers or investors.
• Evaluate renting short-term while awaiting a sale in markets with long days on market.

Investors:

• Stress-test NOI under higher insurance and tax scenarios.
• Expect longer marketing periods; plan capital accordingly.
• Consider markets with healthier absorption rates if liquidity is important.

What to watch next

Key indicators to monitor in the coming months:

• Months of supply: If months of supply falls back under 4 months, markets could tighten again.
• List-to-sale ratio: Movement back toward 100% suggests sellers regain pricing power.
• Local insurance premium trends: Rising premiums will depress demand in coastal markets.
• Mortgage rate trajectory: Lower rates could push buyers back in, shortening days on market.

Frequently Asked Questions

Q: How is “days on market” defined?

A: Median days on market is the median number of days between when a property is listed and when it goes under contract. It is a standard metric used to gauge how quickly homes are selling in a given area.

Q: Is a higher months-of-supply number always bad for sellers?

A: Higher months of supply means more inventory relative to demand, which gives buyers more leverage and usually leads to longer marketing times and more price reductions. Sellers who price competitively and stage effectively can still sell within reasonable time frames, but they should budget for potential price concessions.

Q: Should buyers rush into these slower markets because of discounts?

A: Discounts exist, but buyers should not rush without checking affordability and long-term fundamentals. In coastal markets, insurance and HOA costs can offset a lower purchase price. In pandemic-boom cities, long-term local job and income growth should be evaluated.

Q: What are practical first steps for a seller in Austin or Miami today?

A: In Austin, expect around 5.8 months of supply and that roughly 30% of homes may require price cuts; price to local comps, stage the home, and be prepared to negotiate timing. In Miami, factor in high insurance and HOA costs, and expect homes to sell for around 95% of list price on average.

Bottom line

The US real estate slowdown is concentrated in cities that surged during COVID and are now facing excess inventory, insurance pressures, and tax-driven affordability limits. For buyers, that means leverage and opportunity if you do the math on total housing cost. For sellers, that means pricing discipline and preparedness for longer holding periods or price reductions. If you are selling in Austin, plan around 5.8 months of supply and a likelihood that about 30% of listings will need a price cut.