Some high-priced markets are shifting in buyers’ favor
US home inventory grew 5% in November, the fastest pace in three years according to an analysis by Redfin.
Sales were down 8% and while there was a 3.3% rise in sales prices year-over-year, it was the third consecutive month of gains below 4%. The previous 77 monthly gains had all been above 4%.
"The tide has turned," said Redfin Chief Economist Daryl Fairweather. "Sellers are now competing for buyers, but they haven't all realized it yet. Sellers who have adjusted their price expectations downward are still finding plenty of willing buyers. Sellers holding out for high prices are contributing to declining home sales and growing inventories. We see few signs that buyers are likely to reward their patience."
Redfin’s analysis shows that sales in the 74 largest metros the firm tracks, there was a sales decline in 65; and sales were down overall by 8.3% from a year earlier, the fastest decline in 2 years.
New Orleans (+9.4%), Tampa (+7.2%), Long Island (+7.1%), and Orlando (+6.5%) were the only markets to post an increase in sales above 5%.
Inventory gains
Inventory was up 4.9% year-over-year, the highest level of inventory growth since June 2015, and the eighth straight month that the year-over-year figure increased.
But of course not every market follows the national trend. For example there were sharp rises in inventory in San Jose (+123.2%), Seattle (+96.5%) and Oakland (+60.3%) while Philadelphia (-24.0%), Camden (-19.8%) and New Orleans (-19.1%) were among the metros showing sharp declines in homes available for sale.
