Realtor.com® July Housing Report: Inventory Hits Post-Pandemic High
Rhea-AI Summary
Realtor.com's July 2024 housing report reveals a more buyer-friendly market with rising inventory levels and price cut reductions. Key findings include:
- Active listings grew 36.6% year-over-year, reaching a post-pandemic high
- 18.9% of listings had price cuts, the highest rate since October
- Newly listed homes increased by 3.6% compared to last year
- Median days on market increased to 50 days, 5 days longer than July 2023
- The South and West regions saw the most inventory gains, with 47.6% and 35.4% growth respectively
These trends indicate a healing housing market becoming more balanced, offering buyers more options and potentially setting the stage for increased sales this fall if mortgage rates continue to decline.
Positive
- Active listings grew 36.6% year-over-year, reaching a post-pandemic high
- 18.9% of listings had price cuts, the highest rate since October
- Newly listed homes increased by 3.6% compared to last year
- The South and West regions saw significant inventory gains of 47.6% and 35.4% respectively
- Median days on market increased to 50 days, providing buyers more time to make decisions
Negative
- Inventory levels still remain below pre-pandemic levels
- Midwest and Northeast regions still have significant inventory gaps compared to pre-pandemic levels
- Median listing price remained flat year-over-year at $439,950
Insights
The July housing report from Realtor.com® reveals significant shifts in the U.S. housing market, indicating a more buyer-friendly environment. Key findings include:
- Active listings increased by
36.6% year-over-year, reaching a post-pandemic high. - The share of listings with price cuts rose to
18.9% , the highest since October 2023. - Median days on market increased to 50 days, 5 days longer than July 2023.
These trends suggest a cooling market with more options for buyers and less pressure on prices. However, it's important to note that inventory levels are still
The regional disparities are noteworthy. The South and West are recovering faster, with inventory levels closer to pre-pandemic norms. In contrast, the Midwest and Northeast still face significant inventory shortages compared to 2019 levels.
For investors, this evolving landscape presents both opportunities and challenges. The increased inventory and price cuts may offer better entry points, but the market remains competitive compared to historical norms. The regional variations also highlight the importance of location-specific analysis in real estate investment decisions.
From a financial perspective, the housing market's shift has several implications:
- The median listing price remained flat year-over-year at
$439,950 , suggesting a potential plateau in home values after years of rapid appreciation. - The increase in price cuts (up
3.4% year-over-year) indicates sellers are adjusting expectations, which could lead to more transaction activity. - The
3.6% increase in new listings year-over-year is a positive sign for market liquidity, though still24.5% below 2019 levels.
These trends point to a market rebalancing rather than a dramatic downturn. For investors, this environment may offer more negotiating power and potentially better yields on rental properties as price growth moderates.
However, it's important to consider the broader economic context. If mortgage rates continue to decline as suggested in the report, it could reignite demand and potentially offset some of the current buyer-friendly trends. Investors should closely monitor interest rate movements and their impact on affordability and market dynamics.
The regional variations in the data also underscore the importance of localized analysis. Markets like Seattle, San Jose and Columbus, which saw significant increases in new listings, may offer different investment opportunities compared to areas with more modest inventory growth.
The Realtor.com® July housing report offers valuable insights for urban planners and policymakers:
- The post-pandemic high in active listings suggests a gradual normalization of housing supply, which could ease some of the acute housing shortages in many cities.
- However, with inventory still
28.6% below 2019 levels, there's a clear need for continued focus on housing development and policy initiatives to address long-term supply constraints. - The regional disparities in inventory recovery highlight the need for tailored approaches to housing policy. The Midwest and Northeast, with inventory levels still
46.8% and55.5% below pre-pandemic levels respectively, may require more aggressive measures to stimulate housing supply.
The increase in median days on market to 50 days could provide a window of opportunity for cities to reassess zoning laws, building codes and development incentives to encourage more diverse and affordable housing options.
Urban planners should also consider the potential long-term impacts of these trends on urban development patterns. If the shift towards a more balanced market persists, it could influence decisions about infrastructure investment, public transportation and community services in both urban cores and suburban areas.
The data underscores the importance of flexible, data-driven urban planning approaches that can adapt to rapidly changing market conditions while addressing long-term housing needs and urban sustainability goals.
"The inventory scars of the pandemic-era housing market are continuing to fade," said Danielle Hale, Chief Economist of Realtor.com® "Although active listings are still short of the pre-pandemic mark, we saw the gap continue to narrow meaningfully as active listings hit a post-pandemic high. As sellers continue to list homes and buyers become choosier, the time a home spends on the market is extending, thereby helping the housing market move in a more buyer-friendly direction. In response, sellers are curbing expectations and reducing listing prices more often which could set the stage for more sales this fall, especially if mortgage rates continue to decline."
July 2024 Housing Metrics – National
Metric | Change over Jul 2023 | Change over Jul 2019 |
Median List Price Per Sq.Ft. | +3.1 % | +52.3 |
Median listing price | + | +37.7 % |
Active listings | +36.6 % | -28.6 % |
New listings | +3.6 % | -24.5 % |
Median days on market | +5 days (to 50 days) | -8 days |
Share of active listings with price reductions | +3.4 percentage points (to | +1.3 percentage points |
Inventory Hits Post-Pandemic High
July brings a growth in inventory across the country as all four regions saw active inventory grow year-over-year. Nationwide the total number of homes for sale increased by
"In addition to seeing inventory levels rise to heights not seen since before the pandemic, buyers are also seeing sellers cut prices on a much larger share of homes than last year," said Realtor.com® Senior Economist Ralph McLaughlin. "These are signs that the housing market is healing from an unhealthy state and becoming more balanced."
Sellers Warm Up to Listing Homes and Cutting Prices
With the recent decrease in mortgage rates, more sellers are getting into the market and have seemingly open minds as the share of listings with price cuts increased to
Homes Linger on Market Longer
While options for homes are on the rise, the time homes are spending on the market is also growing. This month, the typical home spent 50 days on the market, which is the fourth month in a row where time spent on market is more than it was during the previous year, meaning buyers have more of an opportunity to scoop up a home they've been eyeing than in previous months. That being said, while it's five more days than the time the typical home spent on the market in July 2023, it's still more than a week (8 days) less than the time spent in July from 2017-2019.
Additional details and full analysis of the market inventory levels and additional trends in listing prices and more can be found in the Realtor.com® July Monthly Housing Report.
July 2024 Housing Overview of the 50 Largest Metros
Metro Area | Median Listing | Median Listing | Median Listing | Median Listing | Median Listing | |
-2.4 % | 1.3 % | 30.6 % | 52.4 % | |||
-6.2 % | -3.4 % | 48.2 % | 60.3 % | |||
-0.3 % | 1.8 % | 10.8 % | 27.2 % | |||
2.0 % | 1.3 % | 13.2 % | 26.5 % | |||
2.2 % | 3.2 % | 44.8 % | 63.3 % | |||
8.2 % | 6.2 % | 31.8 % | 43.5 % | |||
-0.1 % | 2.8 % | 25.6 % | 56.9 % | |||
2.6 % | 4.0 % | 20.9 % | 32.7 % | |||
-5.5 % | 3.1 % | 28.3 % | 49.5 % | |||
11.2 % | 11.4 % | 33.0 % | 33.2 % | |||
-10.7 % | 4.6 % | 11.1 % | 52.4 % | |||
-4.3 % | 0.2 % | 26.7 % | 44.2 % | |||
-7.0 % | 2.2 % | 25.5 % | 46.7 % | |||
4.1 % | 5.2 % | 7.7 % | 30.0 % | |||
2.1 % | 14.1 % | 48.3 % | 65.1 % | |||
-0.3 % | -0.1 % | 18.1 % | 38.5 % | |||
-1.8 % | 3.9 % | 21.8 % | 54.0 % | |||
-3.7 % | -1.0 % | 36.0 % | 53.0 % | |||
-7.7 % | -2.1 % | 32.3 % | 46.8 % | |||
4.4 % | 6.6 % | 47.7 % | 56.3 % | |||
2.5 % | 4.1 % | 47.7 % | 52.7 % | |||
3.8 % | 3.1 % | 21.0 % | 42.1 % | |||
6.8 % | 1.2 % | 50.2 % | 62.9 % | |||
-11.0 % | -8.7 % | 33.8 % | 45.9 % | |||
6.7 % | 6.5 % | 42.0 % | 43.9 % | |||
-1.0 % | 2.2 % | 29.7 % | 35.3 % | |||
-4.4 % | 2.5 % | 51.7 % | 65.6 % | |||
-3.2 % | -2.8 % | 13.5 % | 25.5 % | |||
5.4 % | 7.2 % | 35.1 % | 78.3 % | |||
-6.1 % | 0.0 % | 27.6 % | 44.0 % | |||
-3.8 % | -0.1 % | 37.3 % | 54.4 % | |||
11.4 % | 7.9 % | 36.3 % | 53.1 % | |||
-2.1 % | -0.7 % | 38.1 % | 54.0 % | |||
0.4 % | 6.4 % | 25.1 % | 29.5 % | |||
-2.3 % | 1.6 % | 31.6 % | 41.1 % | |||
9.0 % | 8.2 % | 54.8 % | 49.7 % | |||
-1.3 % | 2.6 % | 23.7 % | 52.1 % | |||
6.1 % | 5.3 % | 40.4 % | 58.2 % | |||
2.6 % | 4.6 % | 43.2 % | 61.0 % | |||
15.6 % | 15.2 % | 30.7 % | 43.6 % | |||
-3.5 % | 3.0 % | 30.7 % | 40.0 % | |||
-4.1 % | -2.9 % | 19.2 % | 38.1 % | |||
-5.4 % | 3.7 % | 45.9 % | 64.8 % | |||
-11.5 % | -6.5 % | 5.1 % | 25.9 % | |||
-6.6 % | -1.4 % | 24.1 % | 25.5 % | |||
-4.3 % | -0.4 % | 30.0 % | 47.4 % | |||
8.7 % | 6.3 % | 36.8 % | 33.3 % | |||
-5.4 % | -2.3 % | 49.1 % | 66.1 % | |||
1.3 % | 4.9 % | 35.5 % | 44.9 % | |||
-2.4 % | 6.0 % | 30.5 % | 58.5 % | |||
Metro Area | Active Listing | New Listing | Median Days | Median Days | Price– | Price- |
56.8 % | 2.3 % | 41 | 1 | 24.4 % | 7.9 pp | |
30.7 % | -11.0 % | 58 | 8 | 31.4 % | -1.3 pp | |
29.8 % | 4.2 % | 36 | -1 | 15.6 % | 3.4 pp | |
34.7 % | -9.6 % | 48 | 4 | 16.8 % | 3.0 pp | |
28.8 % | 11.9 % | 38 | 2 | 14.7 % | 2.2 pp | |
9.9 % | 11.6 % | 26 | -13 | 8.3 % | 0.9 pp | |
59.7 % | 12.0 % | 37 | -2 | 24.3 % | 9.5 pp | |
8.9 % | -3.0 % | 29 | -7 | 13.1 % | 1.3 pp | |
35.2 % | 9.6 % | 30 | -2 | 16.8 % | 4.7 pp | |
10.7 % | 2.2 % | 32 | -8 | 15.3 % | 3.7 pp | |
58.2 % | 17.4 % | 36 | 11 | 20.4 % | 4.7 pp | |
51.5 % | 3.3 % | 43 | 6 | 30.1 % | 5.7 pp | |
75.1 % | 10.5 % | 39 | 8 | 32.4 % | 8.9 pp | |
10.8 % | -5.9 % | 32 | -1 | 14.2 % | -0.9 pp | |
8.0 % | -2.6 % | 22 | -2 | 7.6 % | 2.3 pp | |
35.3 % | -13.2 % | 46 | 6 | 19.5 % | 0.8 pp | |
27.9 % | -0.8 % | 37 | -2 | 24.7 % | 4.9 pp | |
73.3 % | 15.4 % | 57 | 7 | 27.6 % | 8.2 pp | |
25.5 % | 1.5 % | 47 | -4 | 17.4 % | 4.2 pp | |
-20.4 % | 13.5 % | 39 | -7 | 19.9 % | 5.8 pp | |
43.2 % | 8.2 % | 39 | -3 | 13.8 % | 4.3 pp | |
33.3 % | -1.0 % | 33 | 2 | 20.3 % | 5.3 pp | |
49.0 % | -2.6 % | 50 | 6 | 25.2 % | 6.0 pp | |
71.6 % | 5.2 % | 72 | 8 | 17.5 % | 5.2 pp | |
5.0 % | 15.2 % | 27 | -2 | 11.6 % | 1.5 pp | |
21.9 % | 1.4 % | 32 | -4 | 15.2 % | 1.7 pp | |
26.5 % | -1.1 % | 35 | 2 | 25.1 % | 3.4 pp | |
29.6 % | -1.4 % | 66 | 6 | 20.1 % | 0.5 pp | |
3.2 % | 2.9 % | 50 | -4 | 8.6 % | 0.7 pp | |
35.7 % | 15.7 % | 44 | 1 | 22.6 % | 3.1 pp | |
78.7 % | 7.4 % | 58 | 12 | 24.4 % | 6.7 pp | |
13.3 % | -1.8 % | 41 | -4 | 13.5 % | 1.8 pp | |
60.9 % | 2.3 % | 51 | 6 | 28.0 % | 9.4 pp | |
20.4 % | -0.6 % | 44 | -3 | 18.6 % | 3.7 pp | |
29.8 % | 8.1 % | 45 | 7 | 22.0 % | 4.0 pp | |
31.1 % | 13.8 % | 27 | -9 | 10.1 % | 3.2 pp | |
50.7 % | 5.6 % | 38 | -4 | 20.1 % | 7.6 pp | |
39.3 % | 9.8 % | 37 | -6 | 14.1 % | 6.3 pp | |
40.8 % | -0.9 % | 49 | 4 | 16.7 % | 3.8 pp | |
8.2 % | -5.5 % | 21 | 6 | 4.2 % | -4.4 pp | |
48.1 % | -0.3 % | 37 | 1 | 20.8 % | 6.7 pp | |
45.4 % | 1.2 % | 53 | 3 | 27.4 % | 3.1 pp | |
77.7 % | 14.5 % | 33 | 2 | 19.1 % | 8.6 pp | |
36.6 % | 5.2 % | 36 | 2 | 13.0 % | 2.5 pp | |
60.7 % | 30.8 % | 26 | -4 | 11.3 % | 2.4 pp | |
73.5 % | 37.3 % | 31 | -3 | 17.4 % | 4.0 pp | |
15.2 % | 2.4 % | 36 | -2 | 14.2 % | 3.1 pp | |
94.9 % | 5.9 % | 59 | 13 | 30.6 % | 9.7 pp | |
33.2 % | 0.5 % | 34 | 1 | 20.1 % | 7.0 pp | |
24.1 % | -4.1 % | 32 | -3 | 13.4 % | 2.5 pp | |
Methodology
Realtor.com housing data as of June 2024. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. The 50 largest
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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SOURCE Realtor.com
FAQ
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