As mortgage rates inch higher, this spring real estate season isn’t likely to cut home shoppers much of a break, either. But according to a new report from real estate marketplace Realtor.com, there are a few metro areas where skies are a little bluer in terms of inventory.
What the research says
- There are about 250,000 more homes for sale around the country than there were at this time last year, Realtor.com's study says. Compared to January 2022, active listings are up 65%.
- The increase is not because of any big rise in new homes for sale. Instead, it's because sellers have been struggling to close home sales. There were actually fewer new listings at the start of this year compared to January 2022.
- Home sales are down, and listings are sitting on the market longer thanks to 30-year fixed mortgage rates hovering at close to 7%, which many buyers can’t afford. These circumstances have given homebuyers some increased negotiating powers — if they can afford to purchase, of course.
- Just because home sales are taking longer, that doesn’t mean prices are coming down. In fact, Realtor says home prices are rising in many cities, and housing affordability is still a major issue nationwide.
Because home sales overall are down, buyers who can afford current mortgage rates or who can pay cash have more inventory to pick from, as well as more time to bargain with sellers.
“Sellers might have to come down or find some other way to sweeten the deal for buyers,” Realtor Chief Economist Danielle Hale said in a news release.
These 10 metros have seen the biggest increases in homes for sale, according to the new study:
1. Ogden, Utah
Year-over-year active listings increase: 392%
Median home list price: $542,450
2. Huntsville, Alabama
Year-over-year listings increase: 319%
Median home list price: $389,800
3. Nashville, Tennessee
Year-over-year listings increase: 304%
Median home list price: $504,950
4. Austin, Texas
Year-over-year listings increase: 260%
Median home list price: $521,500
5. Sarasota, Florida
Year-over-year listings increase: 259%
Median home list price: $539,750
6. Raleigh, North Carolina
Year-over-year listings increase: 255%
Median home list price: $441,875
7. Fayetteville, Arkansas
Year-over-year listings increase: 211%
Median home list price: $397,232
8. Phoenix, Arizona
Year-over-year listings increase: 190%
Median home list price: $478,395
9. Seattle, Washington
Year-over-year listings increase: 181%
Median home list price: $724,975
10. Colorado Springs, Colorado
Year-over-year listings increase: 164%
Median home list price: $493,250