Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting a daunting task in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 29.2% annually in October to the highest level since December 2019, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
Find your lowest rate. Start hereActive listings make huge leap in October
In a promising sign for prospective borrowers, active home listings surged 29.2% annually in October, according to Realtor.com’s Housing Report.
A typical day during the month yielded 953,814 for-sale listings and marked the twelfth straight month — and 26th of the past 32 — with year-over-year inventory growth. The listing count overshadowed September’s 940,980 and October 2023’s 737,480. Though active listings are trending upwards, they still lag 21.1% from 2017-2019 levels.
“The increase in new listings and subsequent rise in pending sales suggest that we will finally see home sales pick up in the late fall, which would mark the first yearly gain in more than three years,” said Danielle Hale, chief economist at Realtor.com.
Regionally, the South saw active listings grow most at a 34% annual rate. Then came the West at 33.6%, Midwest at 19.8% and Northeast at 14.3%.
Among the 50 largest U.S. housing markets, San Diego led the way with a year-over-year gain in active listing count of 63.3%. Jumps of 60.5% in Seattle, 59.5% in Denver, 57.2% in Miami, and 57.1% in Orlando, Fla., rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in October:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Days on Market | Price– Reduced Share |
| San Diego | 63.3% | $979,200 | -2.0% | 42 | 17.7% |
| Seattle | 60.5% | $759,975 | -4.1% | 44 | 18.2% |
| Denver | 59.5% | $600,000 | -5.5% | 51 | 30.2% |
| Miami | 57.2% | $525,000 | -12.3% | 74 | 17.3% |
| Orlando, Fla. | 57.1% | $427,450 | -5.0% | 69 | 23.1% |
| Jacksonville, Fla. | 50.6% | $397,750 | -6.4% | 70 | 26.1% |
| Las Vegas | 49.3% | $475,000 | 0.0% | 49 | 22.6% |
| Atlanta | 47.2% | $410,000 | -3.5% | 51 | 22.4% |
| Charlotte, N.C. | 46.0% | $429,947 | 2.1% | 53 | 22.8% |
| Sacramento, Calif. | 43.1% | $627,250 | -3.4% | 47 | 19.4% |
| Phoenix | 41.7% | $519,950 | -1.9% | 50 | 28.6% |
| Tampa, Fla. | 40.6% | $399,999 | -7.0% | 73 | 22.6% |
| Raleigh, N.C. | 39.9% | $450,000 | -1.6% | 51 | 17.8% |
| Dallas | 39.3% | $434,500 | -3.2% | 56 | 25.9% |
| Los Angeles | 39.2% | $1,150,000 | -0.8% | 48 | 14.0% |
On the other end of the spectrum, New York gained the least inventory, rising 4.2% from October 2023. Above the Big Apple, active listings rose 7.9% in Milwaukee, 9.6% in St. Louis, 10.1% in Buffalo, N.Y., and 10.6% in Cleveland.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Days on Market | Price– Reduced Share |
| New York | 4.2% | $762,375 | 4.5% | 54 | 8.9% |
| Milwaukee | 7.9% | $377,500 | 11.0% | 32 | 17.1% |
| St. Louis | 9.6% | $299,450 | 8.1% | 46 | 17.5% |
| Buffalo, N.Y. | 10.1% | $269,900 | 5.9% | 42 | 10.4% |
| Cleveland | 10.6% | $250,000 | 5.0% | 42 | 19.4% |
| Detroit | 12.8% | $271,200 | 7.5% | 40 | 17.2% |
| Hartford, Conn. | 12.9% | $399,900 | 0.0% | 33 | 10.8% |
| Chicago | 13.0% | $369,000 | -0.3% | 37 | 15.9% |
| Philadelphia | 13.4% | $376,500 | 7.6% | 43 | 16.0% |
| New Orleans | 15.1% | $325,125 | -2.8% | 79 | 18.4% |
| Indianapolis | 15.5% | $321,950 | 0.6% | 46 | 27.5% |
| Richmond, Va. | 15.8% | $443,018 | 1.8% | 41 | 15.5% |
| Minneapolis | 16.5% | $425,000 | -1.5% | 41 | 18.2% |
| Rochester, N.Y. | 17.6% | $277,450 | 11.0% | 38 | 5.5% |
| San Antonio | 17.6% | $335,000 | -3.5% | 68 | 24.4% |
Additionally, the median time listings spent on the market grew to 58 days, up from 55 days in September and 50 days the year prior. Relatedly, the share of listings with price reductions held at from 18.6% in September while edging down from 18.9% one year ago.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2024.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
