By Vincent Salandro | Builder
Active listings increased 33.5% on a year-over-year basis in October to their highest level since 2020, according to the Realtor.com Monthly Housing Trends Report. While the supply of for-home sales has improved, other market factors, including high listing prices, are preventing more shoppers from taking advantage of the rise in available inventory. Affordability continues to price out many would-be home shoppers in October.
“As the rapid run-up in rates reshapes housing market dynamics this fall, both buyers and sellers are taking a step back to recalibrate their plans. Home shoppers are looking at a monthly mortgage payment that is roughly $1,000 higher than at this time last year, and incomes are rising but not by that much,” says Danielle Hale, chief economist for Realtor.com. “Combined with asking prices that are still climbing at a double-digit yearly pace, the average American has taken a huge hit to their home buying power.”
Despite the increase in supply of active listings, new sellers declined year-over-year for the fifth consecutive month, according to Realtor.com. Pending listings, or homes under contract with a buyer, also dropped on a year-over-year basis in October. Realtor.com says the accelerated inventory improvements in October were largely due to moderating buyer demand, fueled by higher mortgage costs and ongoing inflation.