September Supply Report Signals Start of Future Abundance

Inventory is beginning its recovery with record listings growth, according to the latest report from Realtor.com director of economic research Javier Vivas.

New listings of for-sale homes grew eight percent annually and 0.4 percent from August to September, and price gains are still slowing down to half the pace of fall 2017 to 4.4 percent, according to the Realtor.com report. Inventory is just 0.2 percent lower than in 2017, "setting up an inflection point for recovery nationally," writes Vivas. Townhome and condominium listings growth was three percent annually, and these types of homes now have a 15.5 percent share of all for-sale listings, a six-year high.

The relief to inventory is largely a function of more homes entering the market. This month, new listings totaled 467,000 and were up 8 percent over last September, the biggest yearly jump in new listings since 2013, and the sixth consecutive monthly increase this year. The good news for buyers is listings entering the market are 8 percent or $25,000 cheaper than existing inventory, and 10 percent or 200 square feet smaller than existing inventory. The not so good news is both new and existing listings are still priced higher than last year.

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