By Aarthi Swaminathan
Listings for sale in the market increase at the end of October, which is unusual for this time of year, according to Altos Research.
It’s taken a while, but it’s finally happening – the number of listings for sale on the market is growing, even during what is typically a slow season for the real estate industry.
Active home inventory hit a new high for the year, according to data from Altos Research.
Inventory bottomed out in early March this year and is now up 137%, according to company data, reported by real estate blogger Bill McBride
There were 572,000 single-family homes on the market as of October 21, an increase of 1% from the previous week.
“Usually at this time of year we have fewer new listings and some sales are still ending since the summer. So inventory is dropping” – normally 1-2%, said Mike Simonsen, CEO of Altos Research, in a video. uploaded October 24.
“But not this year,” he added.
“There’s been so little action from buyers that even with… [little] new supplies are coming into the market every week, less than normal, we still have stocks going up every week,” he said.
And expect stocks to continue rising for “a few more weeks” until Thanksgiving, Simonsen predicted.
“There is no precedent for stocks to continue to rise so late in the year,” he added.
Homebuyers feeling a sense of doom with mortgage rates firmly above 7% can breathe a sigh of relief with this news. The 30-year fixed rate averages 7.29%, according to Mortgage News Daily
The biggest inventory gains were in Arizona, Georgia and Texas, Simonsen said.
In Texas in particular, the number of single-family homes on the market has jumped 10% since the beginning of September, he said.
And with this backdrop of high rates and rising inventory, price cuts are on the rise, Altos Research showed, with “no signs of overshooting yet,” Simonsen said.
About 43% of the market saw price declines, he said, as seen in his tweet below.
According to the latest data from S&P Case-Shiller, house prices fell for the second consecutive month in August, the last time in 2012, according to James Knightley, chief international economist at ING.
“Demand is weakening as mortgage rates rise as the inventory of homes for sale rises, meaning further significant price declines are likely,” Knightley added. “Bad news for new homeowners, but it may help bring broader inflation down quickly.”
Do you have ideas on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at email@example.com
(END) Dow Jones Newswire
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