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 lag pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 35.2% annually in May, according to Realtor.com.
Even better, some of the largest inventory gains came in comparatively inexpensive cities and relatively affordable price tiers.
Find your lowest rate. Start hereActive listings take big leap in May
In a promising sign for prospective borrowers, active home listings surged 35.2% annually in May, according to Realtor.com’s Housing Report.
A typical day during the month yielded 787,722 for-sale listings and marked the seventh straight month — and 21st of the past 27 — with year-over-year inventory growth. The listing count overshadowed April’s 734,318 and May 2023’s 582,032.
“In May, as in the previous three months, the growth in homes particularly priced in the $200,000 to $350,000 range outpaced all other price categories, as home inventory in this range grew by 46.6% compared with last year, surpassing even last month’s high 41.0% growth rate,” Danielle Hale, chief economist at Realtor.com, said in the report. “This increase is again primarily fueled by a greater availability of smaller and more affordable homes in the South.”
Regionally, the South saw active listings grow most at a 47.2% annual rate. Then came the West at 34.5%, Midwest at 20.5% and Northeast at 9.4%.
Predictably, southern cities highlighted the leaderboard in annual inventory growth among the 50 largest U.S. housing markets. Tampa, Fla., led the way, with a year-over-year active listing count gain of 87.4%. Jumps of 80.3% in Phoenix, 78% in Orlando, Fla., 72.1% in Denver, and 69.6% in Jacksonville, Fla., rounded out the top five.
Verify your home buying eligibility. Start hereThe table below shows the metro areas with the 15 largest rises in listing count in May:
| Metro area | Annual active listing count growth | Median listing price | Annual median listing price growth | Median days on market |
| Tampa, Fla. | 87.4% | $425,000 | -3.2% | 51 |
| Phoenix | 80.3% | $545,000 | 2.9% | 61 |
| Orlando, Fla. | 78.0% | $440,000 | -2.1% | 51 |
| Denver | 72.1% | $639,000 | -6.3% | 29 |
| Jacksonville, Fla. | 69.6% | $423,000 | -0.9% | 50 |
| San Diego | 64.9% | $1,072,000 | 1.6% | 26 |
| Miami | 63.8% | $539,000 | -11.2% | 64 |
| Seattle | 62.0% | $777,000 | -5.5% | 21 |
| Atlanta | 54.2% | $424,000 | -1.4% | 37 |
| Dallas | 52.5% | $459,000 | -2.1% | 37 |
| Sacramento, Calif. | 46.2% | $673,000 | 1.6% | 29 |
| Memphis, Tenn. | 45.7% | $350,000 | 7.7% | 47 |
| San Antonio, Texas | 44.6% | $348,000 | -2.6% | 50 |
| Charlotte, N.C. | 42.6% | $435,000 | 0.0% | 32 |
| Birmingham, Ala. | 42.3% | $300,000 | 1.2% | 43 |
On the other end of the spectrum, New York had the lightest gain in inventory, inching up 0.6% from May 2023. Above the Big Apple came increases of 2.5% in Cleveland, 4% in Chicago, 4.7% in Hartford, Conn., and 5.4% in Buffalo, N.Y. The table below shows the full bottom 15:
| Metro area | Annual active listing count growth | Median listing price | Annual median listing price growth | Median days on market |
| New York | 0.6% | $789,000 | 7.5% | 43 |
| Cleveland | 2.5% | $274,000 | 15.9% | 30 |
| Chicago | 4.0% | $400,000 | 6.3% | 25 |
| Hartford, Conn. | 4.7% | $447,000 | 5.1% | 16 |
| Buffalo, N.Y. | 5.4% | $300,000 | 18.6% | 21 |
| Philadelphia | 8.4% | $382,000 | 9.3% | 34 |
| Detroit | 8.5% | $260,000 | -3.0% | 32 |
| Milwaukee | 14.6% | $400,000 | 6.7% | 29 |
| Boston | 14.7% | $900,000 | 3.8% | 24 |
| Pittsburgh | 15.4% | $264,000 | 10.8% | 44 |
| Providence, R.I. | 16.8% | $586,000 | 8.5% | 19 |
| St. Louis | 17.4% | $312,000 | 10.9% | 32 |
| Nashville, Tenn. | 17.8% | $588,000 | 1.5% | 30 |
| Washington, D.C. | 17.8% | $640,000 | 0.0% | 28 |
| Kansas City, Mo. | 19.9% | $440,000 | -4.9% | 44 |
The bottom line for home buyers
With affordability sidelining many would-be home buyers, competition could be high 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.
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