Good news for home buyers
The deficit between home buyer demand and the supply of for-sale homes has kept the housing market askew for years.
However, inventory is making strides and, in turn, bringing more balance with it. In May, the number of homes listings climbed to the highest point since August 2020, 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 hereHome listings hit milestone in May
It’s a sight for the sore eyes of prospective borrowers. On the week ending May 11, the total active home listings rose to the highest point in nearly four years.
That culminated after 27 consecutive weeks of annual inventory growth, said Hannah Jones, senior economic research analyst at Realtor.com. Active listings stood 35% higher from the year prior. Year-to-date, they jumped 21.1% annually. However, the amount of listings lags the same week in 2019 by 36.6%.
With the lock-in effect of yesterday’s low mortgage rates fading and home builder confidence gradually growing, signals point to increased options for house hunters in the coming months.
New listings — sellers who put their properties up for sale — also boosted the overall count, growing 6.6% annually. They’ve seen a 10.1% year-to-date annual increase through May 11.
“New listing activity will continue to be influenced by mortgage rate movement, but cooling labor market and inflation data could mean things are moving in the right direction,” said Jones.
The table below shows the year-over-year listing trends, according to Realtor.com:
| Week ending May 11, 2024 | Year-to-date | |
| Median listing prices | 0.0% | 0.2% |
| New listings | 6.6% | 10.1% |
| Active listings | 35.0% | 21.1% |
| Time on market | 1 day slower | 2 days faster |
The bottom line for home buyers
The scarcity of available homes for sale hurt affordability and sidelined many house hunters.
Though, the tide appears to be turning in favor of would-be home buyers. If you’re in the market to to purchase a home, bolster your chances by being prepared. You should also learn how to negotiate your interest rate and see what down payment and closing cost assistance you could qualify for.
Talk with a local mortgage professional if you’re ready to start your path to homeownership.
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