In Q1 2019, the share of for-sale homes in the U.S. did not post an annual decline for the first time since Q3 2016.
Starters homes had the fastest annual growth rate in more than 6 years. By contrast, high-end home supply did drop 4.5 percent. On the West Coast, inventory increased in all three home categories year-over-year. San Jose, Calif. had the most growth with 55.4 percent additional listings, and Trulia's analysis finds that this is due in part to "exhaustion of demand," with homes staying on the market longer, and fewer home shoppers buying what's available.
The growing number of lower-priced homes on the market may be construed as welcome news for many first-time home buyers entering the market this spring. But a closer look at local inventory trends reveals that the markets with the greatest growth in inventory are also markets where prices have rapidly risen to notoriously high levels and supply has been severely constrained over the past few years. This rapid appreciation has caused affordability to deteriorate more quickly in these areas, and the nascent rise in inventory may actually reflect an exhaustion of demand in these communities, more than it reflects a greater number of sellers listing their homes.
Advertisement
Related Stories
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
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
