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 only 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®. Every time a house goes on the market, buyers are jumping on it. Potential buyers may see more homes being listed.
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 continue to sell at a relatively rapid pace of 65 days on average, 4 days faster than last year. There have been 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 evident in large 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 most substantial yearly increase since realtor.com® started tracking it in 2013.