Good news for buyers who have been watching and waiting: the market is showing signs of increased supply and a potential cooling of prices. In other words, you may have more to choose from and better deals.
National inventory grew 4 percent year-over-year in April, while inventory in large markets grew 10 percent, according to a Realtor.com report. Much of that appears to be existing homes, as new construction figures were down this spring as compared to 2018.
In fact, the supply trend started in 2018 and carried over into 2019. The reasons are varied but could be due in part to a series of interest rate hikes that in turn affected mortgage rates (which are hovering near 4.5 percent) as well as factors like tariffs (which affect construction).
One caveat to the recent stories about increased supply and a cooling on bidding wars: it relates mainly to houses in the median ranges to higher price points. Realtor.com also reported that the number of homes $200,000 and under declined by 8 percent, continuing a year-over-year decline in starter homes. So buyers looking for something a bit more affordable may still be battling some competition.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.