It's prime real estate season and on the West Coast, inventory is ticking up and sales are struggling, with some indications that home prices may fall, if they haven't already.
The latest Census data for new-home sales in March show a slight increase in sales as supply has gone up, but the median new-home sales price dropped annually for the fifth month in a row. According to Curbed, the data suggests that builders are adding inventory at lower price points and are discounting prices to attract more buyers, including first-timers and middle-income earners.
The first signs of change came in the summer of 2018, which one realtor Curbed spoke with dubbed “the most competitive housing market in recorded history.” But that prediction didn’t materialize. Instead, homes started lingering on the market and home sales dropped, setting the stage for potential price drops. This trend has been strongest in West Coast markets that have become some of the most expensive in the country, including San Jose, California, San Francisco, and Seattle.
Advertisement
Related Stories
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
