National Housing Inventory Crisis Reaches Inflection Point
U.S. inventory is poised for positive growth boosted by a 5-year high in new listings
- Nationally, new listings jumped 8 percent year-over-year, the largest increase since 2013
- Median listing price growth continues to slow at 7 percent in September, compared to 10 percent last year
- Total listings in the 45 largest markets now up 6 percent on average over last year
SANTA CLARA, Calif., Oct. 3, 2018 /PRNewswire/ -- Realtor.com®, the Home of Home SearchTM, today released its September housing report which shows national inventory has started to flatten, signaling a crucial inflection point for the inventory crisis. According to the report, inventory declined a mere 0.2 percent from a year ago and is poised for positive growth ahead, boosted by an 8 percent increase in new listings -- the largest yearly jump 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. But don't expect the level to jump dramatically. Plenty of buyers in the market are scooping up homes as soon as they're listed, which will keep national increases relatively small for the time being."
In September, the U.S. median listing price remained at $295,000, a 7 percent increase year-over-year, but lower than last year's 10 percent increase. Homes continued to sell at a relatively rapid pace of 65 days on average, 4 days faster than last year. More than 465,000 new listings entered the market in September, an 8 percent increase and the biggest yearly jump since 2013. These new listings were 8 percent, or $25,000, cheaper than existing inventory in the market, and 10 percent, or 200 square-feet, smaller than homes already in the market, on average. Although single-family home inventory remained relatively flat, declining by only 1 percent, new inventory growth was found in condominiums and townhomes, which are now up 3 percent year-over-year.
The inventory recovery is particularly visible in larger cities. In September, 22 of the 45 largest markets in the U.S. saw year-over-year inventory increases. The five markets that saw the largest inventory jumps were San Jose, Calif.; Seattle; Jacksonville, Fla.; San Diego, and San Francisco, all posting increases of 31 percent or more. Inventory also rose over last year in Chicago, Miami, Dallas, Boston, Los Angeles, and New York. Combined inventory in the 45 largest markets increased 5.6 percent year-over-year on average, the largest yearly increase since realtor.com® started tracking it in 2013.
New Listing Growth in Largest 45 Metro Markets* | ||
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% |
* Excluded: Denver; Columbus, Mo.; and Las Vegas due to MLS feed changes during the period analyzed. |
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Contact:
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SOURCE realtor.com
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