Annual gains in available homes recorded in 4 of the past 5 months
The inventory of homes for sale in the US grew by 19,455 in January compared to a year earlier, marking the 4th annual gain over the past 5 months.
Zillow’s Real Estate Market Report reports that the 1.2% rise in inventory in January was the first for the month since 2014.
However, the gains seen in recent months have done little to reverse the downward trend for inventory seen since the start of 2015, although homebuyers may take some comfort that things appear to be shifting.
"For four years, it felt like home buyers couldn't catch a break as for-sale inventory became tighter and tighter with each passing month," said Zillow senior economist Aaron Terrazas. "But during the second half of 2018, something shifted. Home buyers aren't out of the woods yet, but there is a glimmer of light on the horizon. The number of homes on the market is hesitantly inching higher – now approaching the highest level in a year and a half.”
Hot markets gain the most
Inventory gains were the highest in five markets that have been among the hottest recently.
On an annual basis, inventory grew 42.9% in San Jose, Calif., 36.9% in Seattle, 31.9% in San Diego, 29.1% in Los Angeles and 25% in San Francisco.
Conversely, inventory fell 19.9% in Washington D.C. The market has seen double-digit annual decreases in available homes for 3 straight months since Amazon announced it was siting a new HQ there.
Baltimore and Pittsburgh also posted year-over-year inventory declines of at least 10% in January.
Demand still outstripping supply
The median US home value in January was $225,300, up 7.5% year-over-year.
And with rents climbing 2.1% year-over-year to a median of $1,468, and mortgage rates edging lower (4.14% average), demand is set to remain strong.
“With home values still increasing at a steady clip, it's clear that demand still outstrips supply, and with mortgage rates down from recent highs, the first quarter of 2019 is shaping up to be more competitive than the lull we saw as 2018 came to a close," added Terrazas.
|
Metropolitan Area |
Zillow |
ZHVI |
Zillow |
ZRI |
Inventory |
|
United States |
$225,300 |
7.5% |
$1,468 |
2.1% |
1.2% |
|
New York, NY |
$438,300 |
4.9% |
$2,416 |
0.6% |
5.5% |
|
Los Angeles-Long Beach-Anaheim, CA |
$652,300 |
3.3% |
$2,827 |
3.3% |
29.1% |
|
Chicago, IL |
$224,800 |
4.1% |
$1,687 |
2.5% |
2.2% |
|
Dallas-Fort Worth, TX |
$242,600 |
10.9% |
$1,638 |
2.4% |
15.5% |
|
Philadelphia, PA |
$232,700 |
3.5% |
$1,602 |
1.7% |
-6.3% |
|
Houston, TX |
$205,500 |
6.8% |
$1,581 |
2.1% |
8.0% |
|
Washington, DC |
$406,200 |
3.4% |
$2,168 |
1.4% |
-19.9% |
|
Miami-Fort Lauderdale, FL |
$283,800 |
7.5% |
$1,910 |
2.6% |
8.1% |
|
Atlanta, GA |
$217,500 |
12.2% |
$1,439 |
3.5% |
2.5% |
|
Boston, MA |
$467,000 |
6.0% |
$2,390 |
1.4% |
13.7% |
|
San Francisco, CA |
$957,400 |
5.1% |
$3,444 |
1.3% |
25.0% |
|
Detroit, MI |
$160,000 |
8.4% |
$1,224 |
2.1% |
13.7% |
|
Riverside, CA |
$367,100 |
5.7% |
$1,972 |
6.1% |
15.6% |
|
Phoenix, AZ |
$264,900 |
7.4% |
N/A |
N/A |
-1.6% |
|
Seattle, WA |
$489,700 |
3.8% |
$2,230 |
1.5% |
36.9% |
|
Minneapolis-St Paul, MN |
$268,100 |
6.3% |
$1,694 |
4.0% |
0.2% |
|
San Diego, CA |
$591,400 |
3.4% |
$2,634 |
3.8% |
31.9% |
|
St. Louis, MO |
$167,000 |
6.0% |
$1,152 |
1.1% |
-5.8% |
|
Tampa, FL |
$213,600 |
9.4% |
$1,431 |
5.4% |
8.0% |
|
Baltimore, MD |
$267,900 |
3.6% |
$1,750 |
0.8% |
-12.2% |
|
Denver, CO |
$405,300 |
5.1% |
$2,101 |
3.1% |
20.3% |
|
Pittsburgh, PA |
$143,900 |
5.8% |
$1,099 |
5.1% |
-10.0% |
|
Portland, OR |
$397,300 |
4.7% |
$1,866 |
0.0% |
16.8% |
|
Charlotte, NC |
$206,200 |
10.3% |
$1,334 |
3.2% |
2.8% |
|
Sacramento, CA |
$408,700 |
4.3% |
$1,903 |
3.4% |
17.3% |
|
San Antonio, TX |
$192,800 |
7.1% |
$1,359 |
1.3% |
11.2% |
|
Orlando, FL |
$237,100 |
9.5% |
$1,517 |
7.4% |
3.5% |
|
Cincinnati, OH |
$168,900 |
8.4% |
$1,302 |
2.1% |
2.4% |
|
Cleveland, OH |
$145,600 |
6.3% |
$1,158 |
1.1% |
N/A |
|
Kansas City, MO |
$191,600 |
9.7% |
$1,292 |
1.6% |
-9.8% |
|
Las Vegas, NV |
$277,900 |
11.2% |
N/A |
N/A |
2.2% |
|
Columbus, OH |
$189,900 |
7.3% |
$1,356 |
3.3% |
7.5% |
|
Indianapolis, IN |
$163,900 |
12.6% |
$1,231 |
2.0% |
N/A |
|
San Jose, CA |
$1,245,800 |
7.1% |
$3,545 |
1.3% |
42.9% |
|
Austin, TX |
$308,200 |
6.9% |
$1,698 |
1.1% |
5.0% |
