Housing Inventory Picks Up Speed At A Record Pace
Abstract
Housing Inventory Picks Up Speed At A Record Pace An increase in housing inventory could be a welcome relief for home buyers. Getty An increase in housing inventory could be a welcome relief for home buyers. Although buyers had more for-sale home options in July, competition remained largely in sellers' favor, with listing prices near all-time highs and homes selling more quickly than before the pandemic. "Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options." At the same time new listings declined in July, suggesting that some prospective sellers are wondering what recent market shifts mean for their plans to list. With typical monthly mortgage payments now 1.5 times higher than in July 2021, recent home sales data shows that many buyers are putting their plans on pause, which is giving active listings room to grow. Affordability crunch drives out-of-state demand from still-eager buyers Between rising housing costs adding to demand for affordability and increased adoption of remote work policies enabling some Americans to relocate, multiple trends are motivating home shoppers to search farther from where they live. New research illustrates how rising buyer interest in relocating may be one contributing factor behind July's still-hot competition for homes in many areas of the country, with key findings from Realtor.com's second quarter Cross-Market Demand Report including: "Our analysis highlights how home shoppers are prioritizing affordability in the face of financial challenges, but also the variety of reasons that Americans are taking advantage of opportunities to relocate," said Joel Berner, senior economic research analyst for Realtor.com.