The supply/demand balance of U.S. real estate is starting to shift.
Active listings rose 5% in the week ending Saturday, the biggest jump since March 2019, according to a report Thursday from Realtor.com.
“Last week’s housing data showed the real estate refresh has arrived, as active listings posted sizable gains for the first time in three years,” Danielle Hale, Realtor.com’s chief economist, said in the report. “And the year-over-year gap closed rapidly, going from flat to convincingly positive territory in the span of a week.”
Meanwhile, new listings were up 6% annually, the data showed. Spring is the most active listing season for many communities, and the number of new homes hitting the market tends to peak in May, according to the report. In addition, record-high prices are fueling seller confidence.
Indeed, the median listing price for a home was up 15.9% year over year, marking the 22nd straight week of double-digit gains, according to the report.
Increased mortgage rates have dissuaded some potential buyers, and the slip in demand is expected to slow price growth, the report said. Last month, buyers across the U.S. faced the lowest level of competition in a year, according to a separate report from Redfin, Mansion Global reported.
On the flip side, many feel more urgency, as they expect rates to rise further in the coming year.
“Buyers continue to face a challenging market, with for-sale homes lagging behind historical levels and asking prices still rising double-digits year-over-year, after hitting yet another record-high in April,” Ms. Hale continued. “Even so, the accelerated change in inventory trends is a welcome one, driven by the combination of more sellers and fewer buyers able to contend with rising housing costs.”
Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.