The housing market is finally giving buyers some breathing room.
After two years of skyrocketing prices and shrinking inventory, the number of homes on the market just hit its highest level since 2019, sparking hope for frustrated buyers across the country.
In October alone, available homes surged 29.2% from last year, marking a full year of growth in listings, according to an analysis by Realtor.com.
Homeowners nationwide are throwing up “For Sale” signs in droves, especially in former pandemic hot spots like Austin, Memphis and Orlando.
These “boomtowns” are making a comeback in a big way, with Austin inventory jumping a staggering 40.1%, while Memphis and Orlando posted gains of 39.2% and 26.6% respectively.
And this inventory surge isn’t limited to the South; it’s happening across all regions of the US, with the West close behind, up 33.6%, followed by the Midwest and Northeast.
“Sellers continued to increase their activity this October … Total active listings increased to highs not seen since before the pandemic,” says Realtor.com’s senior economist Ralph McLaughlin in the report.
He adds that a dip in mortgage rates back in August might have pushed homeowners on the fence into action, leading to even more listings hitting the market.
The number of fresh listings is up, too.
The West is seeing a 7.0% uptick in newly listed homes compared to last October. Markets like Baltimore, DC and Seattle are leading the pack, with newly listed homes jumping by 24.9%, 19.4% and 17.5%, respectively.
But despite this rush of new inventory, home prices have stayed firm, with the national median price sticking at $424,950 — no change from last October.
According to McLaughlin, “when a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year.”
And while the sticker price might look stable, the price per square foot is anything but, increasing by 2.1% year-over-year and an eye-watering 50.5% since 2019.
However, one silver lining is that more choices mean less pressure to rush a decision.
Homes are sitting on the market for an average of 58 days, a whole week longer than last year and the slowest pace since 2019.
“This marks the slowest October since 2019, marking the seventh month in a row in which homes spent more time on the market compared with the previous year,” says McLaughlin.
For those thinking they can wait out the competition, here’s a warning: the surge in listings is bound to create more buyers, too. Many sellers are also in the market for a new place, so while buyers may have more options, they could face more competition soon.
As McLaughlin predicts, “We now expect home buying activity to begin to tick higher on a year-over-basis through November and December, both because of falling rates as well as a low 2023 benchmark.”
