Housing inventories in high-priced markets are gradually making a turnaround. One-third of the largest 45 U.S. metros saw a yearly increase in housing inventory in July, realtor.com® reports. In some markets, the inventory increase has been dramatic. For example, in Silicon Valley, the San Jose metro posted a 44 percent increase in inventory compared to a year ago.
The greater number of choices, however, doesn’t mean lower prices. The median list price continues to rise and remained at an all-time high of $299,000 in July, unchanged from June, realtor.com® reports. In the 45 largest metros that realtor.com® tracked, prices are notably higher in markets where inventory is on the rise.
The uptick in housing inventories appears to be concentrated in high-priced housing markets, realtor.com® reports. The inventory of homes listed above $350,000 rose 5.7 percent, while the inventory of homes below $200,000 plunged 15.6 percent. The inventory of homes between $200,000 and $350,000 was essentially flat, decreasing slightly at 0.6 percent.
“July inventory growth is in high-priced, competitive markets, and often at the pricier end of these markets,” says Danielle Hale, realtor.com®’s chief economist. “Although signs of an inventory turnaround are encouraging, whether they mean good news for buyers remains to be seen. These areas are seeing more new listings and some construction growth, but high prices and fast-selling homes are causing some buyer hesitation which is reflected in fewer home sales.”
*Excluded: Denver, Columbus, Las Vegas, Nashville and Birmingham data is under revision and excluded due to MLS feed changes. Adjusted: Washington and Baltimore inventory trends are adjusted to show total listing movement instead of active listing movement due to MLS feed changes. Active listings are non-pending, for-sale home listings.
