Over the past six months, the average 30-year fixed mortgage rate has risen from 3.11% to 5.09%, and by all measures, the Fed’s inflation control methods appear to be working. Low inventory has been a driving factor of record-high home prices throughout the last several years, but between March 26 and May 7, nationwide inventory levels rose 10%, according to Fortune.
In the most recent six-week window, 83% of the nation’s 400 largest housing markets saw inventory levels rise, with the most gains reported in western states like Idaho, Nevada, Oregon, and Arizona. Despite more hopeful measures of housing supply rolling in from regional markets across the U.S., active inventory still remains far below pre-pandemic levels, so deceleration could take some time to leave its mark on a still heated housing market.
While inventory levels are rising fast percentage wise, they're still far below pre-pandemic levels. Look no further than Coeur d'Alene, which saw inventory spike 54% between late March and early May as it went from 242 to 373 active listings. However, that's still 62% below the 980 listings it had the first week of May 2019. Simply put: Even if the Great Deceleration picks up steam, it will take time before we're back to a pre-pandemic housing market.