According to Realtor.com data, for-sale listings have increased across the US for the first time since June of 2019. This data is an indication that the national housing supply has finally hit a turning point. New active listings rose about 8%, which translates to about 38,000 more homes on a typical day. Listings are still below last year’s numbers so we’re hoping they continue to come up throughout the year to match buyer demand. Realtor.com suggests the rising availability is likely due to an increase in motivated sellers coupled with a slowdown of potential buyers partially due to higher interest rates. Many buyers have been holding off on purchasing because of high home prices. Cities seeing the largest increase in new active listings include Austin, Texas; Phoenix, Arizona; and Sacramento, California. Some cities are seeing a decline, with Miami, Florida and Virginia Beach, Virginia at the top of that list. The overall national increase doesn’t mean the market is weaking, it’s more that inventory is beginning to catch up.
The market remains “expensive and fast-paced.” Median asking prices for homes is still high with the national average around $447,000. This is up 17% from last year and 35% from two years ago. Homes are selling more quickly as well, with about 31 days on the market as the average. This is about 27 fewer days than what we saw between 2017 and 2019. The research says that “moderating demand is also playing a role” and that adjustments to seller expectations is slow. Actively searching homebuyers will find relief with more seller activity and less competition.
New Listings are Typically Larger
Another change the nation is seeing is larger homes on the market. Listings for smaller homes (considered to be below 1,750 square feet) declined about 1.5% and larger homes (considered to be above 2,000 square feet) increased about 1.5%. Prices for larger homes also increased, with a typical 2,000 square foot single family home priced about 19% higher than last year. Realtor.com says “because of these newly listed homes, larger, more expensive homes make up a bigger share of what’s for-sale this year than last year.” Again, this suggests sellers as well as buyers may need to adjust their expectations to match current market conditions.
What Does This Mean for You?
Here in Idaho, we’re seeing an increase in employment and an increase in home sales. Idaho’s overall home sales so far in 2022 has increased about 4% from last year. Southern Idaho’s sales rose while Northern Idaho’s counties fell. Average home prices throughout Idaho from May 2022 were around $610,000, which is a 3% increase from December 2021. Mortgage rates have certainly increased, but they’re still practical, and we should see a good balance throughout the rest of the year. Idaho’s strong economy is helping the housing market and more houses are likely to hit the market as spring wraps up and summer rolls in. If you are preparing to buy a new home, InterWest Mortgage is your first stop to getting on the right path.