Inventory Growth in More Expensive Markets

Housing inventory increased in some of the most expensive markets in the nation in July, says a new report from Realtor.com. Home listings priced higher than $350,000 rose 5.7 percent annually.

Prices are higher in markets with growing inventory in the 45 largest U.S. metros, as the median home price was an average $494,000 in July, versus $302,000 in markets with dwindling inventory. Realtor.com chief economist Danielle Hale explains, "These areas are seeing more new listings and some construction growth, but high prices and fast-selling homes are causing some buyer hesitation which is reflected in fewer home sales," and that time will tell if growing inventory will ultimately translate into good news for buyers.

In the California metro area of San Jose-Sunnyvale-Santa Clara, where the median listing price reached $1.205 million in July, homes took just 26 days on average, while the number of listings rose 44 percent year-over-year, representing the largest increase in the country. Seattle and its surrounding suburbs—another hot market—had 29 percent more homes on the market in July, compared to the same period last year. The median home price there was $569,000, and a home, on average, took about 30 days to sell.

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