The spring housing market is gearing up to be a bustling one for potential homebuyers, with the latest data from Realtor.com indicating an uptick in available inventory. According to the February housing report released by Realtor.com, there was an increase in the number of homes actively for sale, marking the fourth consecutive month of annual inventory growth.
"The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020," Realtor.com Chief Economist Danielle Hale said. "While the country is still well below pre-pandemic levels, the South is leading the charge, moving faster than other parts of the country, largely driving the increase in availability of homes priced between $200,000 and $350,000, a price category that saw the most year-over-year growth nationally."
The research found that homes in the $200,000 to $350,000 price range experienced 20.6% growth compared to last year, surpassing all other price categories. This increase in affordable housing options may offer favorable conditions for homebuyers seeking budget-friendly choices, potentially leading to a more balanced market heading into the upcoming spring homebuying season.
Among the 50 largest metros analyzed, 29 reported an increase in the inventory of homes for sale compared to the previous year. Southern cities such as Orlando, Miami, and Tampa saw the most substantial inventory growth, with increases of 38.5%, 37.4%, and 36.3%, respectively. While inventory levels in most metros still trail behind pre-pandemic figures, some cities, particularly in Texas, have surpassed 2017 to 2019 levels. San Antonio, Austin, and Dallas led the pack with inventory growth rates of 26.6%, 10.8%, and 2.2%, respectively.
Amidst fluctuating mortgage rates, home sales have demonstrated sensitivity to these changes. Following a period of stability in January and early February, rates surged to 6.94% after a hot inflation report. Despite this, sellers have exhibited readiness to adapt, with the percentage of homes with price reductions increasing from last year. Additionally, the influx of newly-listed homes has risen by 11.3% compared to the previous year, marking the fourth consecutive month of increased listing activity.
