Emerging Trends: Increased Housing Inventory Signals Opportunity

Positive Shift in Housing Market

As spring approaches, there’s a notable resurgence in the housing market, marked by a significant increase in housing inventory. According to a recent report from Realtor.com, US active property listings surged by 14.8% in February compared to the previous year. Additionally, new listings saw an 11.3% uptick during the same period.

Noteworthy Progress

The surge in property listings is significant, signaling a positive trend that extends over four consecutive months. This increase is observed across 29 out of the 50 largest US cities, with the current inventory surpassing levels seen in 2020. Notably, three top markets now boast higher inventories than the years spanning 2017 to 2019.

Implications for Buyers

For prospective homebuyers, this uptick in housing inventory translates to increased options and potentially better affordability. Particularly encouraging is the improvement in inventory within the $200,000 to $350,000 price bracket, with active listings in this segment surging by 25.4% compared to the previous year, notably in Southern regions.

Affordability Trends

Another positive indicator for buyers is the rise in the percentage of homes receiving price cuts, increasing from 13.2% to 14.6% year-over-year in February. This marks the first year-over-year uptick since May, offering a glimmer of hope for those seeking more affordable housing options.

Continuing Challenges

However, despite these positive developments, it’s essential to acknowledge that housing affordability remains a challenge for millions of families. While the 30-year mortgage rate has slightly receded from its late-fall peak, it hovers around 7%, posing affordability constraints for many prospective buyers.

Cheaper-Than-Average Cities: Opportunities for Homebuyers

Below are 17 US real estate markets where homes are priced below the national median of $415,500, coupled with positive inventory growth:

1. Pittsburgh, Pennsylvania
2. Birmingham, Alabama
3. St. Louis, Missouri
4. Louisville, Kentucky
5. Indianapolis, Indiana
6. Oklahoma City, Oklahoma
7. Memphis, Tennessee
8. New Orleans, Louisiana
9. Baltimore, Maryland
10. San Antonio, Texas
11. Cincinnati, Ohio
12. Houston, Texas
13. Columbus, Ohio
14. Virginia Beach, Virginia
15. Charlotte, North Carolina
16. Atlanta, Georgia
17. Jacksonville, Florida

Each city’s median home price, year-over-year growth in median home prices (nominal and per square foot), as well as year-over-year growth in active and new property listings, are provided to aid prospective buyers in their decision-making process.