Supply Up, Sales Down in the West

It's prime real estate season and on the West Coast, inventory is ticking up and sales are struggling, with some indications that home prices may fall, if they haven't already.

The latest Census data for new-home sales in March show a slight increase in sales as supply has gone up, but the median new-home sales price dropped annually for the fifth month in a row. According to Curbed, the data suggests that builders are adding inventory at lower price points and are discounting prices to attract more buyers, including first-timers and middle-income earners.

The first signs of change came in the summer of 2018, which one realtor Curbed spoke with dubbed “the most competitive housing market in recorded history.” But that prediction didn’t materialize. Instead, homes started lingering on the market and home sales dropped, setting the stage for potential price drops. This trend has been strongest in West Coast markets that have become some of the most expensive in the country, including San Jose, California, San Francisco, and Seattle.

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