A series of interest rate hikes kickstarted by the Federal Reserve has led to a decline in homebuying activity nationwide and, subsequently, a higher supply of untouched for-sale inventory. The majority of cities with the largest year-over-year inventory increases are located in the West and South regions, led by Aurora, Colo., with a 115.6% gain in available homes for sale from March 2022 to February 2023, Forbes reports.
Similarly, Southwestern regional markets such as North Las Vegas and Gilbert, Ariz., saw annual declines of 98.3% and 79.4%, respectively.
There are some notable correlations between cities that have experienced large one-year increases in inventory and other housing data. For example, in Aurora, 45.9% of active listings have experienced price drops during the 12-month period March 2022 to February 2023. That’s the highest percentage of price drops in the Aurora housing market since 2017. North Las Vegas is similar, witnessing 33.2% of its active listings having price drops for the 12-month period March 2022 to February 2023. That figure is also the highest percentage of price drops since 2017.