- In June, new listings increased 5.5% year over year and 10.9% compared with May, according to Realtor.com.
- Among the nation’s larger cities, the 10 markets with the highest new listings increases posted gains of 20% or more from a year ago.
- “Our June data report shows good news on the horizon for buyers,” said Realtor.com senior economist George Ratiu.
The epic housing shortage that began before the pandemic and then was exacerbated by it may finally be starting to ease up.
More supply is suddenly coming on the market, which will certainly help frustrated buyers and could, in the longer term, take some of the heat out of home prices.
In June, new listings increased 5.5% year over year and 10.9% compared with May, according to Realtor.com. Among the nation’s larger cities, the 10 markets with the highest new listings increases posted gains of 20% or more from a year ago.
The jump in inventory is surprising, because new listings historically fall between May and June, following the busy spring market. Today’s housing market, however, isn’t following the usual rules, since the pandemic created unprecedented sudden demand for larger suburban homes.
Cities seeing the largest increase in new listings are mostly in the Midwest. Milwaukee, with a 45% increase; Cleveland, with 38%; and Columbus, Ohio, with 26%, top the list. As an outlier, San Jose, California, one of the priciest markets in the nation, saw new listings spike 41%. Phoenix, which had very strong pandemic-induced demand from Northeast transplants, saw new listings up 28%.
On the flip side, Miami, which was probably the most popular destination for New York transplants in the last year, saw new listings decline 8%. Other Southern cities, such as Raleigh, North Carolina, and Nashville, Tennessee, also saw sizeable declines.
If more downtown Boston condos for sale continue to come on the market, along with a steady increase in new construction, the housing boom will slowly pull back. It is unlikely, however, to decline sharply, or “bust,” simply due to favorable demographics and still historically low mortgage rates.
If these trends persist, inventory declines and price growth may continue to moderate as the Boston condo for sale market returns to a more normal pace of activity heading into the second half of 2021