Another sign that U.S. buyers may finally find themselves with more options: Active listings increased by 13% and new listings increased by 2% year-over-year in the week ending June 4th, according to a report Thursday by Realtor.com.
While prices are still on the rise, with median prices up 16.9% year-over-year, the week marked the first time that the pace of price growth has declined at all since mid-April. (The previous week ending May 28, price growth clocked in at 18.2%.)
“The inventory recovery is expected to eventually help tame the frenzied pace of home price growth and today’s data offer a hint of relief on the horizon, though a very distant one,” Realtor.com chief economist Danielle Hale wrote in the report. “We will need to see much more inventory to meaningfully impact the rate of home price increases.
Homes are still selling quickly, however, and spent five fewer days on the market than this time last year, according to the report. Moreover, even with the current increases in supply, inventory remains nearly 50% below its pre-Covid levels, keeping competition tight for the time being.
“Typical asking price growth remains about three times faster than normal, as concerns about future mortgage rate hikes continue to motivate buyers to compete,” Ms. Hale said.
Nevertheless, a slow but steady increase in inventory could signal the start of market trends that will finally work in buyers’ favor. “With more options, home shoppers may see a bit more negotiating room and time to make decisions, even as market conditions continue to favor sellers,” Ms. Hale added.
(Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.)