For the First Time in 4 Years, the Number of Homes for Sale Is Up—Here’s What It Means

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For the first time in four years, the inventory of homes on the market actually grew in October—by 2% nationally, compared with the same time last year. In the fiercely competitive world of U.S. real estate—where a lack of available homes has led to price jumps, bidding wars, and frustrated buyers—this is significant news. Is it a harbinger of changes to come?

While the net increase of 25,000 listings was no avalanche, it marked a sharp change from the severe constriction in supply that has marked recent years and driven up prices. In addition, new listings in October came in at cheaper price points.

“Buyers have been struggling for four years to find homes in their price range, while dealing with bidding wars and multiple-offer situations,” says Danielle Hale, chief economist for realtor.com®. “The inventory increase will not solve the problem overnight, but it should provide some relief to those still in the market, especially if the growth we’re seeing in more affordable homes and condos holds steady.”

Larger metros drove a greater portion of the overall gain in listings; combined inventory in the 45 largest urban areas increased 6% in October compared with the year before. Of those 45 largest markets, 24 saw year-over-year growth in listings. The five markets with the most dramatic growth were San Jose, CA; Seattle; San Francisco; San Diego; and Nashville, TN. In those metros, for-sale housing inventory shot up 32% or more.

However, home prices aren’t coming down yet. The median U.S. home listing price was $295,000 in October, a 7% increase year over year. Still, that was less than last October’s 10% increase over the year before. And new listings came onto the market at prices that were on average 8% cheaper than homes that were already on the market.

“Affordability is still an issue,” Hale notes, “with increasing mortgage rates and prices keeping many would-be buyers on the sidelines.”

The new listings were also an average 10% smaller, perhaps because the fastest inventory growth was in condominiums and townhomes, at 7%. Single-family homes, on the other hand, were up only 1%.

Metro Area
(may include smaller nearby metros)

Change in Active Listings, Year Over Year

Change in New Listings, Year Over Year

San Jose, CA

+130%

+28%

Seattle, WA

+60%

+7%

San Francisco, CA

+42%

+17%

San Diego, CA

+41%

+20%

Nashville, TN

+32%

+19%

Portland, OR

+22%

+2%

Riverside, CA

+19%

+7%

Los Angeles, CA

+19%

+18%

Jacksonville, FL

+17%

+15%

Dallas, TX

+15%

0%

Boston, MA

+12%

+14%

Tampa, FL

+11%

+9%

Houston, TX

+9%

+3%

New York, NY

+9%

+10%

Detroit, MI

+9%

+12%

Atlanta, GA

+9%

+17%

Miami, FL

+8%

+5%

Austin, TX

+6%

+2%

Orlando, FL

+6%

+16%

Hartford, CT

+6%

-3%

Kansas City, MO

+5%

+2%

San Antonio, TX

+4%

+6%

Charlotte, NC

+4%

+13%

Raleigh, NC

+2%

-2%

Chicago, IL

+1%

+11%

Rochester, NY

+1%

+2%

Minneapolis, MN

0%

-6%

Buffalo, NY

-1%

-1%

New Orleans, LA

-1%

+3%

Richmond, VA

-2%

-9%

Virginia Beach, VA

-2%

0%

Baltimore, MD

-2%

-2%

Washington, DC

-2%

+2%

St. Louis, MO

-3%

-2%

Cincinnati, OH

-3%

+6%

Memphis, TN

-3%

0%

Louisville, KY

-5%

-6%

Phoenix, AZ

-6%

-1%

Cleveland, OH

-6%

-2%

Birmingham, AL

-9%

+3%

Philadelphia, PA

+9%

-6%

Pittsburgh, PA

-10%

-3%

Oklahoma City, OK

-11%

-6%

Milwaukee, WI

-12%

-1%

Indianapolis, IN

-16%

13%

 

The post For the First Time in 4 Years, the Number of Homes for Sale Is Up—Here’s What It Means appeared first on Real Estate News & Insights | realtor.com®.


Source: realtor