By KIMBERLEY HAAS
There are pockets of the country where more homes are being listed than there were before the housing market exploded in 2020 which is a good sign for buyers in those metro areas.
According to an article by Margaret Heidenry for Realtor.com, metros that saw the most new homes hit the market include Riverside, CA (+23.3%), Austin, TX (+16.5%), and Sacramento, CA (+11.8%).
Metros include the main city and surrounding suburbs, towns, and smaller urban communities, according to the article.
Compass Agent Paul Reddam in Austin told Heidenry it is hard to nail down what is causing inventory to loosen, but this is typically the peak of their real estate cycle.
The bad news is that the number of homes for sale fell in 42 out of the 50 largest metropolitan areas compared with 2020, according to the article.
Consumers across the country continue to report difficult homebuying conditions due to inflation, higher mortgage rates, and home price appreciation.
Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, said that in April their Home Purchase Sentiment Index fell to its lowest level since the spring of 2020.
The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%.
As a result, the net share of those who say it is a good time to buy decreased 8 percentage points month over month, according to the survey.
“The current lack of entry-level supply and the rapid uptick in mortgage rates appear to be adversely impacting potential first-time homebuyers in particular, evidenced by the larger share of younger respondents (aged 18- to 34) reporting that it’s a ‘bad time to buy a home,’” Duncan said in a statement.
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Email story ideas to Editor Kimberley Haas: [email protected]