Are inventory levels rising?
The Spring market always brings us more inventory, but this year has been different. We’re witnessing a significant shift in the housing market that holds promise for buyers and that will require strategic thinking from sellers and their Realtors.
According to recent data we saw about 734,000 home listings in April which is a 30% increase from April of 2023 and almost double the 380,000 homes listed in April2022!
Regionally speaking, the year-over-year data varies a lot. In Florida, active listings are up 50%+ while in Illinois they are down -5%.
Key Factors Driving the Increase
Boost in New Home Construction: the pace of single-family home construction is at its highest level in over 15 years. In April there were 480,000 new homes for sale, which is the most since January 2008.
Homes Sitting on the Market Longer: the average time a home stays on the market increased to 47 days in April, up from 30 days in April 2022. Higher rates and economic uncertainties are slowing the buyer frenzy, leading to longer market times and higher inventory.
April also saw a 5.7% year-over-year increase in home prices, so the excess inventory has not yet impacted the market. However, the increased inventory does offer hope for buyers who’ve been discouraged by fierce competition and the overall lack of options.
Patient buyers should expect more favorable conditions as we head into the 2nd half of the year, especially if rates continue to improve. Sellers should consider this an opportune time to sell before the inventory levels increase further, especially if they have somewhere else they would rather live.
Overall, more homes for sales is still a good thing for everyone in the industry… right?!
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