Housing inventory is up and sales are down
of ConsumerAffairs
Real estate broker RE/MAX has issued its housing report for September and it shows some trends that, if they continue, could be helpful to home buyers.
Home inventories rose for a seventh straight month. The number of homes for sale rose 6.4% from August and was 33.6% higher than in September 2023 both significant increases.
At the same time, fewer people bought homes in September. Home sales were down 13.3% from August.
Finally, the median sales price fell 1.4% from August to $429,000 after climbing nearly every month. If you put these three trends together, you get more homes on the market, fewer people competing to buy them, and a possible peak in the median home price.
Buyers have more options
"While we're seeing a slight cooling in sales, it's encouraging to note that home inventory has been steadily increasing, giving buyers more options in the market," said RE/MAX President Amy Lessinger.
"The consistency in sales prices and the fact that buyers are still paying 99% of the asking price demonstrates the resiliency in today's housing market. Lower rates could generate some increased activity as we end 2024 and start 2025."
The fact that buyers are paying 99% of the asking price is good for sellers but not necessarily for buyers. But if sellers become more motivated they might be more flexible. Days on the market lengthened by two days over August to 40 days five days more than September 2023. The longer homes stay on the market, the more impatient sellers might get.
It all comes down to supply and demand. One reason home prices are near record highs is because, since 2020, demand has exceeded supply. Many homes have sold for more than the asking price because of bidding wars.
But, there is no guarantee these trends will continue. In the 52 metros in the RE/MAX survey, the number of newly listed homes was down 0.3% compared to August 2024. However, it was up 9.7% compared to September 2023.
Where new listings are growing fastest
The markets with the biggest increase in year-over-year new listings percentage were Bozeman, Mont., with a 35.9% increase; Phoenix, with a 32.8% increase; and Las Vegas, where inventories are up 27.5% in the last 12 months. Buying in those markets might present the most opportunities, but all three markets have seen large price gains since the start of the pandemic.
House-hunting in Tampa, San Francisco and San Antonio might be more challenging since those three markets have seen the largest declines in housing inventory.
Despite these encouraging trends, its not that helpful to budget-conscious buyers if most of the increase in inventory is for the most expensive homes. RE/MAX Around Atlanta Broker/Owner Kristen Jones said Atlantas housing inventory has risen but is still top-heavy with expensive homes.
There simply is not enough inventory under half a million dollars, Jones said. Sales are up in some price points especially over $500,000 but I think rates need to drop to really see some change."
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-15 16:40:23
