Despite continued mortgage rates rising (See here the minimum rates you can qualify), House prices continue to rise. And one of the major factors behind these rising home prices is that the United States is currently facing a shortage of real estate inventories. According to Freddie Mac data, the United States is short of more than 3 million homes due to supply chain problems and material shortages. This is not helped by the surge in construction speed and the small number of existing homes on the market. “If something is missing, buyers have no choice but to offer more,” Bankrate analyst Jeff Ostrovsky said about why home prices continue to set records.
However, there are actually more new listings in some markets than before the pandemic. In fact, according to the report, 6 out of 50 cities actually have more new listings than they did before the pandemic (the average of new listings from January to April (property on the market within 14 days). See and measure). 2022 vs. January-April 2017 average-2019). According to an analysis by mortgage technology and data provider Black Knight, these cities are San Francisco, San Jose, CA, Seattle, Portland, San Antonio, and Kansas City.
Why is the new list important? Black Knight shows that it can take some time for the overall inventory level to normalize if the new list remains constrained, especially in situations where inventory is currently low. Explains that it may be. However, if the new list grows, it may indicate that inventory may be returned (relatively) sooner. Of course, the other side of this equation is sales volume, and how slow sales volume is in each market also affects overall inventory levels.
So what is driving the increase in new listings in some markets? Of course, this depends on the market, but professionals say that pandemic-related remote work may be related to how housing demand has shifted from affordable urban markets to more affordable ones. For example, as prices in San Francisco, San Jose, Seattle, and Portland soar, homeowners tend to leave these locations for more affordable destinations in the Mountain West region. “In Aidaho, Utah, Nevada and Arizona, there is an influx of buyers from California. Still, the tech capital has a very shortage of homes, so prices aren’t falling in these markets,” Ost said. Lovsky says.
Nicole Bachaud, Zillow’s economist, states that the Bay Area and Seattle are two areas where the population surged long before the pandemic and the subsequent housing affordability challenges. “Before the pandemic, inventories in these areas were so low that there was no room for them to fall as much as in other markets across the country, where inventories were significantly reduced, but housing costs were also high. Nevertheless, competition for available inventory remains fierce in these markets, “says Basho. In other words, there are more lists, but don’t expect it to be very easy to get the house you want.
San Francisco and San Jose have fewer deficits than many other cities (23% and 36%, respectively). Compare it to spots like Raleigh: Of the top 50 largest housing markets in the United States, Raleigh occupies the top spot as the largest deficit city: the number of active lists is pre-pandemic. The new list is down 37%, down 83% from the level.