Realtor.com: New Trends Emerge (Nerd Alert!)

Summary

This video delves into the US housing market's current dynamics, highlighting a 0.9% decrease in asking prices over the past year and a 34.6% rise in housing inventory. It discusses the implications of increased inventory and the slowing sales, which contribute to a softer housing market. The video also touches on the 32-week streak of price reductions and the impact of higher interest rates on new listings. It concludes by noting the transition towards a buyer's market, with regional variations in inventory levels.

Takeaways

• 🏠 Asking prices have been relatively flat or down for 14 consecutive weeks, indicating a softening in the U.S. housing market.
• 📈 Housing inventory has increased by 34.6% year-over-year, providing more options and negotiating power for buyers.
• 🔍 Inventory levels have been higher than the previous year for 43 consecutive weeks, suggesting a shift towards a buyer's market.
• 📉 New listings have seen a slowdown in growth, with an increase of less than 10% year-over-year since May, contributing to stagnant inventory growth.
• 📊 The year-over-year growth rate of inventory has been stagnant at around 35-38% for nearly four months, indicating a potential plateau in the market.
• 📉 The number of price reductions has increased by 31.9% year-over-year, with more sellers adjusting their asking prices to attract buyers.
• ⏳ Houses are taking longer to sell, with an average of six days longer compared to the previous year, contributing to higher inventory levels.
• 📉 The share of price reductions is at 39%, higher than last year but slightly lower than the peak in 2022, showing a continued trend of price adjustments.
• 🌐 Regional differences are significant, with some states like California and the Northeast experiencing lower inventory compared to 2019, while others like Texas, Idaho, Florida, and Tennessee see increases.
• 🏡 The dichotomy between new home construction sales and the resale market is evident, with new home sales increasing while the resale market hits a record low.

Q & A

What is the current trend in asking prices for US housing market?

Asking prices have been relatively flat or down for 14 consecutive weeks compared to the previous year due to higher inventory and lower home sales.

How has the housing inventory in the US changed year-over-year?

Housing inventory has increased by 34.6% compared to the same time frame in 2023, marking 43 consecutive weeks of higher inventory than the previous year.

What is the significance of the increase in housing inventory?

The increase in inventory is good news for home buyers as it provides more options and negotiating power, while sellers have to compete more due to the higher number of homes for sale.

How has the growth rate of inventory been trending recently?

The growth rate of inventory has been stagnant for nearly four months, fluctuating around 35 to 38% year-over-year gains.

What factors are contributing to the stagnation of inventory growth?

The stagnation is due to a slowdown in the number of new listings or new supply in the market, with new listings only increasing by single digits, less than 10%, since early May.

How does the current housing market compare to pre-pandemic levels?

Although there are 38% more homes for sale compared to last year, the market still has about 26% fewer houses for sale compared to the same time frame in 2019.

What is the current average time for a house to sell in the US?

Houses are taking six days longer to sell compared to 12 months ago, marking the 17th consecutive week of increased time on the market.

How has the number of price reductions changed year-over-year?

The number of price reductions has increased by 31.9% year-over-year, with more price drops than last year for 32 consecutive weeks, although the increase is the smallest since the beginning of March.

What is the current share of price drops in the housing market?

The share of price drops is at 39%, meaning nearly 4 out of 10 homes for sale have reduced their asking price, which is higher than last year but slightly lower than the peak in 2022.

How does the current housing market outlook compare to 2022?

Home price growth is expected to soften due to factors like flat or decreasing asking prices, higher inventory levels, seasonality effects, and sluggish home sales rates, unlike the sharp correction seen in 2022.