As inventory reappears, the housing market’s narrative is shifting.
- Albany-Schenectady-Troy, N.Y.
- Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
- San Antonio-New Braunfels, Texas
- Jacksonville, Fla.
- Riverside-San Bernardino-Ontario, Calif.
- Los Angeles-Long Beach-Anaheim, Calif.
- Providence-Warwick, R.I.-Mass.
- Dallas-Fort Worth-Arlington, Texas
- Nashville-Davidson-Murfreesboro-Franklin, Tenn.
- Tampa-St. Petersburg-Clearwater, Fla.
Averaging these markets, home prices have risen 1.4 percent year-over-year—a deep dive from 8.4 percent the prior year, according to realtor.com. On the flip side, inventory jumped 14.6 percent—a big break from the 4 percent national trend—and each market has more than four months supply, one month more than the 50 largest markets in the nation. Meanwhile, sales have slowed, on average falling 5.5 percent year-over-year.
“The U.S. housing market has largely favored sellers over the last several years as a result of the record-breaking low inventory and red-hot demand that led to intense competition and fast-rising home prices,” explains Danielle Hale, chief economist at realtor.com. “However, we’re now seeing some metros buck this trend.”
Every major region is represented, suggesting the turn is widespread—but the driving factors vary. According to realtor.com, in Chicago, Jacksonville, Los Angeles, Providence, Riverside and Tampa, economic gains are lagging the national trend, and fewer job prospects are pushing residents out. In Dallas, Nashville and San Antonio, the driving force is largely overheated prices, which, long-term, were unsustainable.
Across these areas, sales are still weak, but are expected to grow as inventory rises, Hale says.
“These 10 housing markets are already more buyer-friendly when looking at the availability of homes for sale in different markets; however, the mismatch between what’s available and what buyers want has led to lukewarm demand and lackluster sales,” she states. “As inventory continues to grow in these markets, buyers will see more options, and should ultimately gain more bargaining power.”
For more information, please visit www.realtor.com.
Suzanne De Vita is RISMedia’s online news editor. RISMedia is the residential real estate industry’s definitive source for news and information. Email Suzanne your real estate news ideas at email@example.com.