New housing data from Realtor.com® offers some good news for first-time buyers who have struggled to find inventory at their price point.
New listings have grown on a yearly basis for the fourth month now in a row as sellers have added a higher number of starter/smaller homes to the market. While inventory is still lower compared to last year, the rate of decline is improving steadily, especially at the more affordable price points. If this trend continues to move upwards, we could see future relief for first time buyers looking for their first homes.
“July housing trends show a market still working its way back toward some version of normal. The feverish pace of home sales is beginning to follow historical season patterns, while new listings grew at an unusually high rate for the summer months, further helping the inventory crunch,” remarked Realtor.com® Chief Economist Danielle Hale. “This is shifting the housing market balance in a more buyer-friendly direction, but buyers may not see as much price moderation as suggested by the national trend because it’s partly attributed to a shift toward smaller homes for sale. Still, if these changing inventory dynamics continue, we could see a wave of real estate activity heading into the latter part of the year.”
Looking at the single family home category alone, the share of homes having between 750 and 1,750 square-feet increased from 30.2% in July 2020 to 36.3% in July 2021, while the inventory of homes having between 3,000 and 6,000 square-feet decreased from 24.2% to 20.1%.
Additionally, homes sold faster compared to last year in many of the United States’ largest metros, which on average saw time on market decline by 17 days year-over-year in July. The three metros where homes sold fastet in July compared to last year were all in the South: Miami, at a wide margin of 61 days faster, Jacksonville, Florida at 30 days, and Raleigh, North Carolina, at 33 days.
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