Home buyers get some good news
The shortage of for-sale homes compared to demand has been a major cause of the affordability obstacle course many home buyers face.
Slowly though, the numbers are becoming more beneficial to house hunters, with inventory growing and pushing past their prepandemic levels in some markets, according to Intercontinental Exchange (ICE).
See which metro areas had more listings come to market and where property values softened most.
Find your lowest rate. Start hereSupply of for-sale homes makes strides
The bottomed-out mortgage rates of the Covid era stirred a home buying frenzy, dwindling an already-short supply of for-sale properties. This year’s stubbornly high interest rates dually priced-out prospective borrowers and allowed inventory to build through that quelled demand.
As of April, the number of homes for sale in the U.S. still sits 35.9% below the prepandemic average (PPA) from 2017 to 2019, according to the ICE Mortgage Monitor Report. However, that increased 15 percentage points from April 2023’s 50.9% deficit.
Further, inventory increased year-over-year in 86 of the 95 most populous housing markets (90.5%), with 14 rising above their PPA. Lakeland, Fla., had the largest surplus in April 2024 compared to its PPA at 43.4%. Then came Austin, Texas at 28.9%, San Antonio at 27.4%, Palm Bay, Fla., at 17.2% and Colorado Springs, Colo., at 17.1%.
On the flip side, Connecticut had the most substantial deficits. Hartford lagged its PPA for-sale listings by 80.8%, closely followed by Bridgeport’s 80.2% and New Haven’s 75.5%. Deficits of 74.3% in Albany, N.Y., and 71.6% in Springfield, Mass., rounded out the bottom five.
The table below shows April’s highest supplies of for-sale housing compared to their PPAs, according to ICE:
| Metro Area | PPA inventory deficit/surplus April 2024 | PPA inventory deficit/surplus April 2023 | Percentage point change from April 2023 to April 2024 |
| Lakeland, Fla. | 43.4% | -4.6% | 48.0 |
| Austin, Texas | 28.9% | 4.3% | 24.6 |
| San Antonio | 27.4% | -11.7% | 39.1 |
| Palm Bay, Fla. | 17.2% | -32.9% | 50.2 |
| Colorado Springs, Colo. | 17.1% | -14.7% | 31.7 |
| Denver | 15.2% | -26.9% | 42.1 |
| McAllen, Texas | 12.2% | -24.3% | 36.4 |
| Deltona, Fla. | 11.0% | -31.7% | 42.7 |
| Dallas | 7.4% | -27.4% | 34.8 |
| Cape Coral, Fla. | 6.4% | -43.2% | 49.7 |
| San Francisco | 5.8% | -18.8% | 24.6 |
| Tampa, Fla. | 5.2% | -38.0% | 43.1 |
| New Orleans | 2.5% | -20.9% | 23.5 |
| North Port, Fla. | 2.2% | -43.6% | 45.8 |
| Orlando, Fla. | -0.7% | -39.5% | 38.9 |
Florida dominated the leaderboard by annual strides in inventory, boasting the entire top six and nine of the top 15. Palm Bay went from a 32.9% PPA deficit to a 17.2% surplus — a jump of 50.2 percentage points. Next came gains of 49.7 percentage points in Cape Coral, 48 in Lakeland, 45.8 in Northport and 43.1 in Tampa.
However, not every market enjoyed an uptick in for-sale listings. Las Vegas fell 16.9 percentage points year-over-year. Then came drops of 2.3 percentage points in Bridgeport, 1.1 in Springfield, 1 in Syracuse, N.Y., and 0.9 in Cleveland.
See what rate you qualify for. Start hereThe table below shows April’s largest year-over-year inventory gains compared to their PPAs, according to ICE:
| Metro Area | PPA inventory deficit/surplus April 2024 | PPA inventory deficit/surplus April 2023 | Percentage point change from April 2023 to April 2024 |
| Palm Bay, Fla. | 17.2% | -32.9% | 50.2 |
| Cape Coral, Fla. | 6.4% | -43.2% | 49.7 |
| Lakeland, Fla. | 43.4% | -4.6% | 48.0 |
| North Port, Fla. | 2.2% | -43.6% | 45.8 |
| Tampa, Fla. | 5.2% | -38.0% | 43.1 |
| Deltona, Fla. | 11.0% | -31.7% | 42.7 |
| Denver | 15.2% | -26.9% | 42.1 |
| San Antonio | 27.4% | -11.7% | 39.1 |
| Orlando, Fla. | -0.7% | -39.5% | 38.9 |
| McAllen, Texas | 12.2% | -24.3% | 36.4 |
| Jacksonville, Fla. | -3.2% | -39.1% | 36.0 |
| Dallas | 7.4% | -27.4% | 34.8 |
| Colorado Springs, Colo. | 17.1% | -14.7% | 31.7 |
| Phoenix | -10.9% | -39.6% | 28.7 |
| Miami | -24.6% | -52.4% | 27.8 |
“Inventory seems to be the primary differentiator when it comes to the bifurcation we’re seeing in housing market temperatures across the country,” said Andy Walden, ICE’s vice president of enterprise research strategy. “Generally speaking, the Northeast and Midwest still face deep deficits in available homes for sale, helping prices continue to run hot. On the other end of the spectrum, prices are softening in Florida and Texas as for-sale inventories rise in both states. Then you’ve got California, where affordability and inventory are in a steel cage match to determine dominance.”
The bottom line for home buyers
The lack of for-sale properties in recent times relegated many potential home buyers to the sidelines.
However, the inventory rebound has begun, with some markets exceeding their prepandemic baselines. Those looking to purchase a home should be ready to move fast as “any substantial move in [mortgage] rates can result in those supply/demand dynamics shifting quickly,” said Walden.
If you’re ready to begin, talk with a local mortgage professional to see what’s your best loan type and if you qualify for any financial assistance.
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