Inventory Boom: Home Listings Top Pre-Pandemic Volume, Moderating Price Growth

Housing Market Moderation: Home Listings Surpass Pre-Pandemic Volume as Prices See Modest September Increase

According to the latest housing data from Homes.com, the United States real estate market in September demonstrated signs of reaching a better equilibrium, characterized by a notable increase in available properties. While the national cost of homeownership continued its upward trajectory year-over-year, the pace of growth was more subdued.

The figures indicate that the median price for a single-family home reached $385,000, marking a 2% annual increase—an addition of $7,500 compared to the prior year. However, this figure suggests a cooling off, as it remains below the $395,000 peak recorded in June.

Inventory Reaches a Post-Pandemic High

A key factor driving the market’s rebalancing is the substantial growth in housing availability. Total property listings jumped 8.1% annually, achieving the highest volume of new inventory since 2021. This increase has pushed the overall supply of homes beyond pre-pandemic levels, a positive indicator for market health.

Erika Ludvigsen, national director of residential analytics at Homes.com, noted that this improved market balance is supported by both the rise in listings and a recent easing of mortgage interest rates.

Regional Divergence in Pricing

The national data masks significant variations in local markets, with price trends heavily dependent on local supply and demand conditions.

• Midwest Strength: Continuing an established trend, the Midwest experienced the most robust price appreciation. Key metropolitan areas, including Detroit, St. Louis, Cleveland, and Kansas City, Missouri, saw substantial growth, led by Pittsburgh's impressive 7.6% price surge. This regional resilience is attributed to stable buyer interest and a limited inventory of new construction.

• Sun Belt Slowdown: Conversely, many Sun Belt markets saw home prices stabilize or fall slightly. These areas, which experienced rapid development during and after the pandemic, are now grappling with an oversupply of homes. Consequently, locations like Richmond, Virginia; Raleigh, North Carolina; Atlanta; Austin, Texas; and Houston were among those where median prices remained flat or declined.

Variation by Housing Type

The data also revealed different trends based on property type:

• The median price for detached single-family houses rose by approximately 1.8% to reach $390,000.

• In contrast, the prices for both attached housing and condominiums remained unchanged when compared to figures from the previous year.
  
  
  Source: Homes.com