Realtor.com says inventory crisis is at inflection point
The inventory crisis which is hampering home sales and growing demand from potential first-time buyers is starting to see improvement.
Realtor.com’s September housing report shows an 8% rise in new listings year-over-year with inventory down just 0.2% from a year earlier. The year-over-year percentage rise in new listings was the highest since 2013.
"After years of record-breaking inventory declines, September's almost flat inventory signals a big change in the real estate market," said Danielle Hale, chief economist for realtor.com®. "Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize.”
However, Hale doesn’t expect a dramatic rise in available homes nationally as buyers in the most competitive markets are snapping up homes as soon as they are listed.
Price, size decrease
The US median home price was up 7% year-over-year to $295,000, marking a slower pace than the 10% annual rise of a year earlier.
The 465,000 newly-listed homes in September were, on average, 8% cheaper ($25,000) and 10% smaller (200 sq. ft.) than existing inventory in the market.
New inventory was driven by condos and townhomes with a 3% rise year-over-year compared to a 1% decline for single-family detached homes.
Of the largest 45 metros, 22 saw year-over-year inventory increases with San Jose, Seattle, Jacksonville, San Diego, and San Francisco all up at least 31%.
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New Listing Growth in Largest 45 Metro Markets* |
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MSA |
Active Listing Count |
New Listing Count |
|
San Jose-Sunnyvale-Santa Clara, Calif. |
113% |
82% |
|
Seattle-Tacoma-Bellevue, Wash. |
47% |
20% |
|
San Diego-Carlsbad, Calif. |
34% |
24% |
|
San Francisco-Oakland-Hayward, Calif. |
33% |
23% |
|
Nashville-Davidson--Murfreesboro--Franklin, Tenn. |
31% |
27% |
|
Portland-Vancouver-Hillsboro, Ore.-Wash. |
21% |
10% |
|
Riverside-San Bernardino-Ontario, Calif. |
15% |
11% |
|
Dallas-Fort Worth-Arlington, Texas |
14% |
3% |
|
Jacksonville, Fla. |
14% |
54% |
|
Los Angeles-Long Beach-Anaheim, Calif. |
13% |
20% |
|
Kansas City, Mo.-Kan. |
8% |
0% |
|
Tampa-St. Petersburg-Clearwater, Fla. |
7% |
65% |
|
Boston-Cambridge-Newton, Mass.-N.H. |
7% |
21% |
|
New York-Newark-Jersey City, N.Y.-N.J.-Pa. |
7% |
14% |
|
Houston-The Woodlands-Sugar Land, Texas |
5% |
18% |
|
Detroit-Warren-Dearborn, Mich. |
5% |
8% |
|
Miami-Fort Lauderdale-West Palm Beach, Fla. |
3% |
79% |
|
Hartford-West Hartford-East Hartford, Conn. |
3% |
-4% |
|
San Antonio-New Braunfels, Texas |
3% |
8% |
|
Austin-Round Rock, Texas |
2% |
8% |
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis. |
1% |
10% |
|
Raleigh, N.C. |
1% |
0% |
|
New Orleans-Metairie, La. |
-1% |
-9% |
|
Rochester, N.Y. |
-1% |
-6% |
|
Orlando-Kissimmee-Sanford, Fla. |
-1% |
50% |
|
Atlanta-Sandy Springs-Roswell, Ga. |
-1% |
12% |
|
Charlotte-Concord-Gastonia, N.C.-S.C. |
-2% |
4% |
|
Memphis, Tenn.-Miss.-Ark. |
-2% |
2% |
|
Buffalo-Cheektowaga-Niagara Falls, N.Y. |
-2% |
9% |
|
Baltimore-Columbia-Towson, Md. |
-3% |
3% |
|
Minneapolis-St. Paul-Bloomington, Minn.-Wis. |
-3% |
12% |
|
St. Louis, Mo.-Ill. |
-4% |
-1% |
|
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V. |
-5% |
-1% |
|
Richmond, Va. |
-5% |
-4% |
|
Virginia Beach-Norfolk-Newport News, Va.-N.C. |
-5% |
1% |
|
Cleveland-Elyria, Ohio |
-5% |
0% |
|
Cincinnati, Ohio-Ky.-Ind. |
-6% |
-1% |
|
Louisville/Jefferson County, Ky.-Ind. |
-7% |
4% |
|
Phoenix-Mesa-Scottsdale, Ariz. |
-8% |
-2% |
|
Birmingham-Hoover, Ala. |
-10% |
8% |
|
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. |
-11% |
7% |
|
Pittsburgh, Pa. |
-11% |
-5% |
|
Oklahoma City, Okla. |
-11% |
-8% |
|
Milwaukee-Waukesha-West Allis, Wis. |
-14% |
2% |
|
Indianapolis-Carmel-Anderson, Ind. |
-21% |
10% |
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* Excluded: Denver; Columbus, Mo.; and Las Vegas due to MLS feed changes during the period analyzed. |
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