Skip to main content

Inventory Begins A Slow Recovery

Katie Jensen
Jun 16, 2021

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

KEY TAKEAWAYS
  • Inventory grew 3.9% from April to May, and out of the top 50 U.S. Markets, only 6 saw inventory fall since April.
  • Inventory across the U.S. is down 31.2% since May 2020, and has been trending up since mid-March of 2021.
  • The amount of time before a newly listed home goes under contract dropped to just 6 days nationwide, and is trending downwards.
  • Rents also grew significantly with an increase in monthly growth, from 1.2% in April to 2.3% in May. The average rent for May was $1,747, up 5.4% or $89 over last year.

After more than a year of record-breaking home value appreciation, the market is finally showing signs of recovery as inventory continues to build. Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline. Out of the top 50 U.S. Markets, only 6 saw inventory fall since April.

Zillow economist, Treh Manhertz, said, “Despite an extremely strong demand for homes in this red-hot market, a steady increase in new listings appears to have finally started turning the tides, bringing a long-anticipated turn toward more choices for buyers. Builders are rushing to churn out new homes, while widespread vaccinations and improved confidence in the economy should help current owners feel more comfortable listing their homes for sale."

Overall, inventory across the U.S. is down 31.2% since May 2020, but this is an improvement from April’s 32.8% decline. New inventory has been trending up since mid-March of 2021.

Still, the amount of time before a newly listed home goes under contract dropped to just 6 days nationwide, and is trending downwards. In hot Midwest metros of Cincinnati, Kansas City, and Columbus, time on the market is as short as 3 days. 

In May, annual home appreciation reached a record-breaking 13.2% and monthly growth of 1.7%. Month-over-month growth continues to accelerate in 47 of the 50 U.S. states, with a deceleration in just 3 states. The average home value is now $287,148. 

Rents also grew significantly with an increase in monthly growth, from 1.2% in April to 2.3% in May. The average rent for May was $1,747, up 5.4% or $89 over last year. The inland West is the most affected by rent appreciation. The top 8 metros for annual rent growth are Boise, Phoenix, Spokane, Las Vegas, Riverside, Stockton, Fresno, and Albuquerque -- all with increases higher than 15%.

Zillow economists predict prices to continue rising into next year, with a 14.9% increase in home value by May 2022. Sales are forecasted to reach $5.91 million in 2021, which is a 4.8% increase over 2020.

More information on the latest inventory trends and home value trends can be read on Zillow’s latest Markets Report.
 

Published
Jun 16, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021