Inventory recovery made “major strides” in June, according to the Realtor.com® Monthly Housing Trends Report, with the number of homes available to buyers climbing at its fastest yearly pace of all time (+18.7%).
It was the second straight month of active listings growth in nearly three years, according to Danielle Hale, Realtor.com chief economist, who said she expects the improvements to continue. Despite the recovery, there are still there are still fewer than half (-53.2%) as many for-sale homes compared to June 2019, the data showed.
New sellers helped advance this recovery, according to the report—they entered the market at a higher rate than in 2017-2019 prior to the pandemic.
Hale said a deeper dive into June’s inventory gains by square footage reveals potential opportunities for move-up buyers, as newly-listed homes skewed larger. “This first wave of supply improvements may be particularly opportune for summer sellers looking to upgrade from their starter homes, which could mean more equity to put towards purchasing a bigger property,” she said.
The increase in larger, more expensive homes as a share of new listings is one reason that overall asking prices are still high despite moderating demand, according to the report. In June, homes with at least 1,750 square feet accounted for more new listings (54.3%, up from 52.7% in 2021) than relatively smaller homes (45.7%, down from 47.3% in 2021).
Another factor was pending listing declines (-16.3% year-over-year), which means fewer for-sale homes under contract with a buyer, according to the report.
Compared to June 2021, active inventory increased in 40 of the 50 largest U.S. metros, led by Austin, Texas (+144.5%), Phoenix (+113.2%), and Raleigh, N.C. (+111.7%).
June’s biggest new listings gains (+11% overall) were posted in southern markets including Raleigh (+37.6%), Nashville, Tenn. (+37.2%) and Charlotte, N.C. (+30.1%), as well as Las Vegas, Nevada (+34.8%).