• Active inventory growth slowed again, with for-sale homes up just 18% above one year ago. The number of homes for sale continues to grow, but compared to one year ago, the pace is slowing. As we have discussed previously, further slowing is likely ahead. Due to the limited housing inventory, many buyers have turned their attention towards newly constructed homes.Here is a graph of the year-over-year change in inventory according to realtor.com.
• New listings–a measure of sellers putting homes up for sale–were down again this week, by 20% from one year ago. The number of newly listed homes has been lower than the same time the previous year for the past 47 weeks. This week’s gap was smaller than last two weeks’, but the lack of new sellers is still a drag on home sales. In fact, this trend holds for all four regions in May, and the West saw the most significant decline in listing activities. Existing homeowners, benefiting from mortgage rates considerably lower than current rates, are reluctant to list their properties, leading to a lag in new listings.
Inventory is still up year-over-year - from record lows - however, the YoY increase has slowed sharply recently.
This was the smallest YoY increase since June 2022.
The recent trend suggests active inventory could be down YoY in late June or July!