Spring homebuying season came in full force in April yet the expected increase in listings did not, says Zillow. Back in March, there were signs of a possible upturn in inventory for the month of April, yet housing inventory dipped 1.4% from March instead. Inventory was down 30.3% last month from April 2020, with some markets experiencing much higher drops. The March to April inventory drop was much less severe than months prior, notes Zillow. Some experts predict housing inventory will remain flat before increasing, which may happen in the second half of 2021 through 2022.
And like March, the national picture obscures some encouraging local trends. Inventory was up in April from March in 29 of the nation’s 50 largest markets, and was flat in a 30th market. Compared to a year ago, inventory was up in three large markets: San Jose (+37%), San Francisco (+32%) and Seattle (+3%).
Still, it’s clear the inventory shortage won’t reverse itself overnight, and that the relative lack of choice in the market is helping to drive home value appreciation to new heights and the time on market for those homes that do get listed to fresh lows. The typical U.S. home was worth $281,370 in April, up 1.3% from March and 11.6% from April 2020. Monthly appreciation in April was the fastest ever recorded in the 25-year history of the Zillow Home Value Index, and the annual growth rate was the fastest since 2005.