May 25, 2018

New Reality? Buyers Face Fewer Choices

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New Reality? Buyers Face Fewer Choices

Many markets are seeing so few new listings that they may not be able to meet the strong buyer demand heading into what is traditionally real estate’s busiest season.

Read more: Existing-Home Sales Reach Decade High

Listings are down more than 7 percent compared to a year ago across the country, according to the latest data from the National Association of REALTORS®.

Where Homes Are Selling the Fastest® inventory data shows the following metro areas had listings that stayed on the market the shortest amount of time in January:

  • San Jose-Sunnyvale-Santa Clara, Calif.: 43 days
  • San Francisco-Oakland-Hayward, Calif.: 47 days
  • San Diego-Carlsbad, Calif.: 55 days
  • Seattle-Tacoma-Bellevue, Wash.: 57 days
  • Nashville-Davidson-Murfreesboro-Franklin, Tenn.: 58 days
  • Vallejo-Fairfield, Calif.: 58 days
  • Greeley, Colo.: 58 days

Source: National Association of REALTORS®

“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range,” says Lawrence Yun, NAR’s chief economist.® notes that the following markets are particularly very light on listings:

  • Chicago: -13% (active listings compared to a year ago)
  • Philadelphia: -14%
  • Washington: -15%
  • Seattle: -17%
  • Minneapolis: -18%
  • St. Louis: -12%
  • Baltimore: -16%
  • Cleveland: -18%
  • Orlando, Fla.: -19%

On the other hand, home shoppers may find more choices this year in a few select markets. Notably, Las Vegas is seeing an 18 percent increase in active listings compared to a year ago; Pittsburgh is seeing a 9 percent increase; and Houston and San Antonio are posting a 6 percent increase.

Source: “House Hunting? Here’s Where You’ll Find What You Want, and Where You Won’t,” CNBC (Feb. 22, 2017) and “Existing-Home Sales Reach Decade High,” REALTOR® Magazine Daily News (Feb. 22, 2017)