Active listings show year-over-year growth as inventories rebound

Active listings were up 13% year over year for the week ending June 4, according to a report of real estate agent.com.

Despite the double-digit increase, active inventory remains nearly 50% lower than inventory levels at the start of the COVID-19 pandemic and down 13% year-to-date.

New listings also rose in the week ending June 4, up 2% from a year ago, but down 1% year-to-date.

According At Fannie Mae’s Home buying sentiment index, sellers’ confidence was elevated due to higher asking prices, which, in turn, kept new listings in positive territory year-over-year for nine of the past 10 weeks. Experts believe that seller confidence and rising home prices will continue to be an important driver of the recovery in housing inventories.

Compared to the same period a year ago, the median list price increased by 16.9%, marking the 25e consecutive week of double-digit price gains. However, this is the first time in seven weeks that the growth rate was slightly lower week-over-week.

As inventory levels begin to rebound, Realtor.com expects home price increases to eventually moderate. But so far, the increase in the number of active registrations has yet to have a significant impact.

“The recovery in inventories should eventually help bring the torrid pace of house price growth under control and today’s data offers a hint of relief on the horizon, albeit a very distant one. Typical asking price growth remains around three times faster than normal as worries about the future rising mortgage rates continue to inspire buyers to compete,” Danielle Hale, chief economist at Realtor.com, said in a statement.

The report also found homes spent five fewer days on the market than in the same week a year earlier, but experts expect rising inventories to eventually slow the ultra-housing market. rapidly in recent years.

The average time a home spends on the market hit a new high in May. Typically, this feat is achieved during the height of the summer market. Overall, year-to-date, the average time to market is nine days faster than a year ago.

“We’ll need to see a lot more inventory to have a meaningful impact on the rate of home price increases,” Hale said. “With more options, home buyers can see a little more room for negotiation and time to make decisions, even if market conditions continue to favor sellers. Inventory trends over the past week are promising, with active listings rising double digits from 2021 levels after simply closing the gap a few weeks ago.