Lots of listings: San Jose and Seattle see biggest uptick in housing inventory

Aly J. Yale
The Mortgage Reports contributor

Head westward

Want lots of choices when buying a home? Then head to San Jose. The California city leads the nation in housing inventory increases, with a 123 percent uptick in listings since 2017.

Verify your new rate (Sep 19th, 2019)

Listing overload

According to new data from Redfin, San Jose housing inventory jumped 123.3 percent over the year in November, the nation’s biggest rise in listings by a mile.

Seattle saw the second-largest jump in inventory, with a 96.5 percent uptick year-over-year. Oakland, California, came in at No. 3, with listings rising 60 percent since November 2017.

Overall, housing inventory rose 4.9 percent over the year — its highest annual growth rate since June 2015.

The inventory turn-around: New listings see their biggest jump in 5 years

The inventory influence

The bump in inventory is starting to dampen home prices, too — particularly in higher-cost markets.

In San Jose, for example, the average home sold for just under $1.1 million in November. That’s 1.2 percent higher than last year, but the smallest uptick in prices in more than six years.

Seattle home buyers are seeing a similar effect. The median home price in November clocked in at $548K — a 4.4 percent jump over 2017 and the smallest increase in price since early 2015.

Home price growth, inventory shortages continue to let up

Both cities are seeing drops in above-listing price sales as well. Last year, 76 percent of San Jose homes sold over listing price. In November, only 54 percent did. Sellers are also slashing prices more often and bidding wars are becoming less common, according to Redfin.

“Slowing price growth and a growing percentage of price drops are other signs that the regions’ real estate markets may finally be cooling,” said Dana Olsen, Redfin’s data journalist.

Verify your new rate (Sep 19th, 2019)

Get today’s mortgage rates

Rising inventory and slowing home prices make for prime homebuying conditions. Want to buy in? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Sep 19th, 2019)