A lack of inventory has plagued U.S. home buyers over the last few years, fueling both bidding wars and rising prices. But the latest nationwide listing data indicates that may be starting to change.
“While buyers saw little change in rising competition, last week’s data showed a promising shift,” Danielle Hale, Realtor.com’s chief economist, said in the report. “New-listings growth hit the highest level in nearly four months, even after adjustments for the impact of weather-related events at the same time in 2021.”
At the same time, active inventory saw its smallest annual decline, 23%, since September, according to the report.
“In some potential good news for all parties, yearly declines in active listings showed early signs of improvement last week, largely due to the lift in new sellers,” Ms. Hale continued. “Whether these inventory trends continue will be key to home sales momentum in the coming months.”
Although things may be improving on the supply side, strong demand continues to keep prices elevated and homes selling fast.
The median listing price of a home rose 12.9% last week compared to the same time in 2021, marking the 10th consecutive week of double-digit gains, the data showed. Meanwhile, the average residence spent 20 fewer days on the market than it did last year, the pace of sales getting faster for the fourth straight week.
“With demand still outpacing supply, home prices and time on market continue to accelerate,” Ms. Hale said. “For many buyers, looming rate hikes could be creating a sense of urgency to find a home while monthly payments might still be affordable. More new sellers could help those odds, but it’s important to remember that many sellers are also buying a home and could also be motivated to compete by rising rates.”
Article Source: Mansion Global
