home inventory

Along with high mortgage rates and continually rising prices, low inventory has been instrumental in the housing market stagnation. Finally – primarily in the South, at least (Eugene, OR and Fort Wayne, IN excepted) – a significant increase in the homes for sale has things (hopefully) trending upward. The year-over-year increase is included.

1. Cape Coral, FL (99.3%)
2. Eugene, OR (46.7%)
3. Fayetteville, NC (42.2%)
4. Gulfport, MS (35.7%)
5. Corpus Christi, TX (34.1%)
6. Lafayette, LA (32.1%)
7. Little Rock, AR (30.7%)
8. Mobile, AL (30.3%)
9. Memphis, TN (28.5%)
10. Fort Wayne, IN (27.0%)

Yes, we’re in the prime selling season but amidst all the home selling problems – high interest rates, uncertain economy – one shortcoming stands above all the others: a shortage of housing inventory. And, while inventory is up a bit year-over year, it is still below pre-pandemic levels and is more a function of house sitting on the market longer. However, the news is (pretty) good in a few markets at least. Here are the top 10 metro areas where homes for sale are rising:

1. Sarasota, FL
2. Nashville, TN
3. Austin, TX
4. New Orleans, LA
5. Tulsa, OK
6. Raleigh, NC
7. Wichita, KS
8. Las Vegas, NV
9. Greenville, SC
10. Omaha, NE

While home prices continue to climb, the good news is that the number of homes for sale nationwide increased by 3.9 percent in May, only the fifth gain on a month-by-month basis in the last 2 years.

Within the fifty largest markets in the U.S., only six saw housing inventory fall from April. However, in keeping things in perspective, the number of home on the market is down 31.2 percent from May 2020.

According to analysts, most of the increase in inventory is due to an increase in new construction activity.

According to the November Zillow Real Estate Market Report the number of homes for sale has increased year-over-year for three straight months after four years of annual declines.

Many of the most significant increases are in some of the country’s hottest markets (think San Jose and San Francisco) but these are also areas with the most potential buyers so competition remains fierce.

Nationwide, the median home value is $222,800 up 7.7 percent year-over-year.

It’s been a constant theme for awhile now but according to Zillow’s Real Estate Market Reports for May the number of for-sale homes on the market is dropping at the fastest pace in nearly four years.

Nationwide, there are 9 percent fewer homes for sale than a year ago in 2016. San Jose has approximately 30 percent fewer home on the market than a year ago.

Moreover, new home construction is unable to keep up with demand and likely out of the price range of most first-time buyers. Compounding the problem are investors who buy new homes with the intention of renting.