Sellers in some of the U.S.’s most in-demand areas are looking to turn profits, leading to a large inventory jump in those areas, according to a Realtor.com report released Wednesday.
In the California metro area of San Jose-Sunnyvale-Santa Clara, where the median listing price reached $1.205 million in July, homes took just 26 days on average, while the number of listings rose 44% year-over-year, representing the largest increase in the country.
Seattle and its surrounding suburbs—another hot market—had 29% more homes on the market in July, compared to the same period last year. The median home price there was $569,000, and a home, on average, took about 30 days to sell.
Across the U.S., the median listing price remained at a record high of $299,000 in July. Although it was flat from June, it was a 9% increase on an annual basis.
Meanwhile, U.S. homes sold in an average of 59 days in July, 5 days faster than last year.
Overall housing inventory fell 4% year-over-year in July, but listings above $350,000 were up 5.7%.
|Market Snapshot of 20 Largest U.S. Metros|
|San Jose, CA||44%||$1,205,000||26 days|
|Seattle, WA||29%||$569,000||30 days|
|Providence, RI||23%||$350,000||46 days|
|Portland, OR||19%||$472,000||38 days|
|San Diego, CA||18%||$691,000||35 days|
|Dallas, TX||15%||$349,000||40 days|
|Sacramento, CA||12%||$460,000||37 days|
|Jacksonville, FL||11%||$308,000||61 days|
|Riverside, CA||10%||$391,000||47 days|
|San Francisco, CA||10%||$940,000||29 days|
|New Orleans, LA||7%||$282,000||68 days|
|Boston, MA||5%||$519,000||42 days|
|Kansas City, MO||4%||$272,000||46 days|
|San Antonio, TX||3%||$292,000||52 days|
|New York, NY||2%||$536,000||64 days|
|Tampa, FL||1%||$273,000||58 days|
|Los Angeles, CA||-1%||$752,000||39 days|
|Miami, FL||-1%||$394,000||90 days|
|Austin, TX||-1%||$371,000||50 days|
“July inventory growth is in high-priced, competitive markets, and often at the pricier end of these markets,” Danielle Hale, chief economist for Realtor.com, said in the report. “It’s not just California markets that have seen an increase in inventory, markets on both coasts and in the South reported inventory increases in July.”
Among the 45 largest metro areas, one-third saw housing inventory up last month, including Providence, Rhode Island, (23%), Dallas (15%), San Francisco (10%), Boston (5%) and New York (2%).
“Although signs of an inventory turnaround are encouraging, whether they mean good news for buyers remains to be seen,” Ms. Hale said. “These areas are seeing more new listings and some construction growth, but high prices and fast-selling homes are causing some buyer hesitation which is reflected in fewer home sales.”
In the 45 largest metros, prices are significantly higher in markets where inventory is rising. The median home price in those markets averaged $494,000 in July, compared to an average price of $302,000 in markets where inventory is falling, according to the report.