Realtor.com: Inventory crisis appears to be ending
SANTA CLARA, Calif. – Oct. 3, 2018 – Realtor.com's September housing report shows national inventory has started to flatten, signaling a crucial inflection point for the inventory crisis. The numbers are based on listings submitted to realtor.com for the month, and it refers to realtor.com listing prices rather than actual selling prices.
According to the realtor.com report, inventory declined a small 0.2 percent from a year ago, but it's poised for positive growth ahead thanks to 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," says 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," Hale warns. "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."
Florida cities cited in realtor.com's September study
- Jacksonville: Current inventory up 14%; new inventory up 54%
- Tampa-St. Petersburg-Clearwater: Current inventory up 7%; new inventory up 65%
- Miami-Fort Lauderdale-West Palm Beach: Current inventory up 3%; new inventory up 79%
- Orlando-Kissimmee-Sanford: Current inventory down 1%; new inventory up 50%
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, according to realtor.com. 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. The new listings were 8 percent ($25,000) cheaper than existing inventory in the market, and 10 percent (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.
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