Supply Data Reveal October Surprise

The supply of for-sale homes increased in October by two percent year-over-year. This is the first time since 2014 that there was for-sale supply growth for October.

Roughly 25,000 homes were added to the national for-sale supply. The combined inventory in the 45 biggest cities studied grew by six percent annually for the month; San Jose, Calif., Seattle, San Francisco, San Diego, Calif. and Nashville had the greatest annual gains, all posting more than 32 percent, according to Realtor.com's data. Danielle Hale, chief economist for the listing platform, says, “The inventory increase will not solve the problem overnight, but it should provide some relief to those still in the market, especially if the growth we’re seeing in more affordable homes and condos holds steady."

However, home prices aren't coming down yet. The median U.S. home listing price was $295,000 in October, a 7 percent increase year over year. Still, that was less than last October's 10 percent increase over the year before. And new listings came onto the market at prices that were on average 8 percent cheaper than homes that were already on the market. "Affordability is still an issue," Hale notes, "with increasing mortgage rates and prices keeping many would-be buyers on the sidelines.”

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