SANTA CLARA, Calif.,
Dec. 9, 2019 /PRNewswire/
-- What a difference a year makes. In November 2018, higher mortgage rates and
increasing inventory characterized the U.S. housing market. This
November, the number of homes for sale fell nearly 10 percent
year-over-year in a market where low interest rates are spurring
increased demand, according to the November
2019 Housing Trends report released today by
realtor.com®.
"As millennials -- the largest cohort of buyers in U.S. history
-- embrace homeownership and take advantage of this year's
unexpectedly low mortgage rates, demand is outstripping supply,
causing inventory to vanish," according to realtor.com senior
economist, George Ratiu. "The
housing shortage is felt acutely at the entry-level of the market,
where most millennials are looking to break into the market for
their first home."
Ratiu added, "The issue is further compounded by the fact that
sellers tend to be more reluctant to list during the colder time of
year when the market typically makes a seasonal slowdown."
Based on realtor.com's listing data, the shortage of available
homes for sale is accelerating. Overall, inventory declined 9.5
percent in November, compared to October's drop of 6.9 percent.
November's inventory declines amounted to a loss of 131,000
listings nationwide, compared to this time last year. In the
nation's 50 largest metros, inventory declined by 8.8 percent
year-over-year. Additionally, the volume of new listings hitting
the market has decreased by 7.7 percent since last year, adding to
the nation's inventory woes.
Finding an affordable home still remains one of the largest
obstacles to homebuyers, and is predicted to continue to be a
problem for many buyers heading into 2020. The inventory of homes
priced below $200,000 decreased by a
substantial 16.5 percent year-over-year in November, up from the
15.2 percent decrease seen in October. Inventory decreases were the
norm across all price points in November. Mid-tier inventory priced
between $200,000 and $750,000 also decreased by 7.4 percent
year-over-year compared to October's year-over-year drop of 4.3
percent, while high-end inventory priced above $1 million decreased by 1.7 percent
year-over-year, compared to October's year-over-year increase of
1.3 percent.
"The inventory decreases seen across all value ranges could in
part be attributed to a spill-over effect, as the lack of inventory
has pushed buyers up the price chain to stretch their budgets and
search for homes above their initial price target," Ratiu
noted.
The metros with the sharpest drops in inventory were
San Diego (-28.1 percent);
Phoenix (-24.1 percent); and
Rochester, N.Y. (-22.4 percent).
Only four of the 50 largest metros saw inventory increase
year-over-year. The largest inventory increases were in
Las Vegas (+14.4 percent);
Minneapolis (+11.5 percent); and
San Antonio, Texas (+7.2
percent).
Facing even fewer options than last year, eager buyers are
acting quickly to close on the few homes that are currently
available. During November, home sold in an average of 70 days
nationally, two days more quickly than last year. Raleigh, N.C.; Hartford, Conn.; and Birmingham, Ala.; saw the largest declines in
days on market with properties spending 10, 10, and 9, fewer days
on the market than last year, respectively. Conversely, properties
in some of metros found homes sitting on the market longer. Homes
in Los Angeles; San Jose, Calif. and Las Vegas sold 20, 12, and 10 days more slowly
than last year, respectively.
Meanwhile, the national median home price has yet to adjust to
the recent inventory declines after a multi-month run up in
inventory earlier this year. The median U.S. listing price grew by
only 3.6 percent year-over-year, to $309,000 in November, which is less than the 4.3
percent year-over-year increase seen last month. However, of the 50
largest U.S. metros, 43 saw year-over-year gains in median listing
prices. Los Angeles (+16.6
percent); Rochester, N.Y. (+12.8
percent); and Birmingham, Ala.
(+12.3 percent); saw the highest year-over-year median list price
growth in November. Conversely, the steepest price declines were
seen in Louisville, Ky. (-4.0
percent); Minneapolis (-2.0
percent); and Houston (-1.6
percent).
Metros Seeing the Largest Declines in
Inventory
Metro
|
Active Listing
Count YoY
|
Median Listing
Price
|
Median Listing
Price YoY
|
Median Days on
Market
|
Median Days on
Market Y-Y
|
San Diego-Carlsbad,
Calif.
|
-28.1%
|
$715,000
|
8.4%
|
46
|
7
|
Phoenix-Mesa-Scottsdale, Ariz.
|
-24.1%
|
$375,000
|
8.9%
|
45
|
-1
|
Rochester,
N.Y.
|
-22.4%
|
$202,900
|
12.8%
|
50
|
-8
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
-22.2%
|
$1,099,000
|
1.5%
|
49
|
12
|
Seattle-Tacoma-Bellevue, Wash.
|
-22.1%
|
$580,000
|
5.5%
|
49
|
4
|
Cincinnati,
Ohio-Ky.-Ind.
|
-21.5%
|
$260,000
|
5.7%
|
52
|
-5
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
-21.4%
|
$295,000
|
11.9%
|
64
|
-2
|
Washington-Arlington-Alexandria,
DC-Va.-Md.-W.V.
|
-21.2%
|
$475,000
|
6.8%
|
50
|
-1
|
Providence-Warwick,
R.I.-Mass.
|
-20.1%
|
$375,000
|
7.2%
|
59
|
2
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
-19.5%
|
$485,139
|
9.0%
|
55
|
6
|
Oklahoma City,
Okla.
|
-18.5%
|
$250,000
|
5.9%
|
55
|
-6
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
-18.1%
|
$299,900
|
7.6%
|
63
|
-2
|
Memphis,
Tenn.-Miss.-Ark.
|
-17.5%
|
$234,900
|
9.8%
|
60
|
-7
|
Riverside-San
Bernardino-Ontario, Calif.
|
-17.4%
|
$409,900
|
3.8%
|
57
|
7
|
San
Francisco-Oakland-Hayward, Calif.
|
-17.0%
|
$933,000
|
5.1%
|
43
|
7
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
-16.2%
|
$369,900
|
5.7%
|
41
|
-2
|
Birmingham-Hoover,
Ala.
|
-15.3%
|
$252,500
|
12.3%
|
72
|
-9
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
-14.8%
|
$465,000
|
-1.0%
|
59
|
4
|
Hartford-West
Hartford-East Hartford, Conn.
|
-14.2%
|
$275,000
|
3.0%
|
65
|
-10
|
Austin-Round Rock,
Texas
|
-13.7%
|
$354,718
|
1.4%
|
61
|
-3
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
-13.3%
|
$279,000
|
4.8%
|
60
|
3
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
-13.0%
|
$335,000
|
1.5%
|
57
|
-6
|
St. Louis,
Mo.-Ill.
|
-12.6%
|
$219,900
|
3.9%
|
70
|
1
|
Pittsburgh,
Pa.
|
-12.2%
|
$195,000
|
10.2%
|
74
|
-5
|
Baltimore-Columbia-Towson, Md.
|
-12.0%
|
$320,000
|
3.2%
|
58
|
-1
|
Orlando-Kissimmee-Sanford, Fla.
|
-11.7%
|
$319,000
|
5.1%
|
63
|
1
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
-11.2%
|
$859,000
|
16.6%
|
64
|
20
|
Boston-Cambridge-Newton, Mass.-N.H.
|
-10.7%
|
$589,900
|
9.4%
|
57
|
5
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
-10.7%
|
$189,900
|
1.7%
|
53
|
-3
|
Milwaukee-Waukesha-West Allis, Wis.
|
-10.1%
|
$279,900
|
4.4%
|
56
|
3
|
Columbus,
Ohio
|
-9.9%
|
$275,000
|
5.8%
|
51
|
-2
|
Kansas City,
Mo.-Kan.
|
-9.4%
|
$300,000
|
3.5%
|
63
|
1
|
Indianapolis-Carmel-Anderson, Ind.
|
-8.7%
|
$259,900
|
8.3%
|
59
|
1
|
New Orleans-Metairie,
La.
|
-8.2%
|
$284,000
|
1.7%
|
73
|
-2
|
Cleveland-Elyria,
Ohio
|
-7.9%
|
$185,000
|
0.3%
|
65
|
-1
|
Jacksonville,
Fla.
|
-7.8%
|
$312,000
|
4.1%
|
68
|
-3
|
Denver-Aurora-Lakewood, Colo.
|
-7.2%
|
$498,000
|
4.8%
|
51
|
7
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
-7.2%
|
$409,000
|
2.8%
|
91
|
5
|
Richmond,
Va.
|
-6.0%
|
$315,000
|
2.3%
|
56
|
-1
|
Louisville/Jefferson
County, Ky.-Ind.
|
-5.1%
|
$244,900
|
-4.0%
|
52
|
-1
|
Raleigh,
N.C.
|
-3.8%
|
$359,900
|
1.4%
|
63
|
-10
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
-3.1%
|
$550,000
|
2.8%
|
66
|
-4
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
-2.3%
|
$309,000
|
2.3%
|
57
|
1
|
Dallas-Fort
Worth-Arlington, Texas
|
-1.0%
|
$340,000
|
0.0%
|
59
|
1
|
Houston-The
Woodlands-Sugar Land, Texas
|
-1.0%
|
$305,000
|
-1.6%
|
64
|
0
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
-0.6%
|
$320,000
|
0.3%
|
57
|
3
|
Detroit-Warren-Dearborn, Mich.
|
0.8%
|
$232,500
|
3.3%
|
50
|
3
|
San Antonio-New
Braunfels, Texas
|
7.2%
|
$285,750
|
-1.5%
|
63
|
-4
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
11.5%
|
$342,990
|
-2.0%
|
50
|
-2
|
Las
Vegas-Henderson-Paradise, Nev.
|
14.4%
|
$319,500
|
-0.1%
|
53
|
10
|
About realtor.com®
Realtor.com®,
The Home of Home Search℠, offers the most MLS-listed for-sale
listings among national real estate portals, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. Through its
Opcity platform, realtor.com® uses data science and
machine learning to connect consumers with a real estate
professional based on their specific buying and selling needs.
Realtor.com® pioneered the world of digital real estate
20 years ago, and today is a trusted resource for home buyers,
sellers and dreamers by making all things home simple, efficient
and enjoyable. Realtor.com® is operated by News Corp
[Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a
perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
Media Contacts:
- Cody
Horvat - cody.horvat@move.com
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SOURCE realtor.com