For the first time since 2014, U.S. homebuyers had more for-sale inventory to choose from in January 2019 than they did the year before.
The latest market report from real estate platform Zillow shows that for-sale inventory grew 1.2 percent annually, with the greatest growth in softening West Coast markets, despite strong competition. The typical home was valued at $225,300 last month, up 7.5 percent year-over-year. As well, the median rent was $1,468, up 2.1 percent annually, and marked the third consecutive month of faster price appreciation.
Still, inventory did rise year-over-year in 28 of those 35 large markets, and many are adding inventory at a rapid pace, especially a handful of previously red-hot West Coast markets. On an annual basis, January inventory grew 42.9 percent in San Jose, Calif., 36.9 percent in Seattle, 31.9 percent in San Diego, 29.1 percent in Los Angeles, and 25 percent in San Francisco. Recent rapid growth in inventory is putting many of these areas closer to recent peak levels: Inventory is less than 10 percent below recent peaks in Los Angeles and San Jose, and is just 2.3 percent below peak in San Francisco.