Inventory remains tight, but realtor.com’s weekly housing report suggests that supply may be slowly moving a bit closer to demand as more current owners decide to move.
SANTA CLARA, Calif. – Despite the continued trend of record low inventory and unheard of price gains, the long overdue seasonal slowdown may be finally taking hold, according to realtor.com’s Weekly Housing Report for the week ending Oct. 24.
The report found continued improvement in newly listed homes and a slight softening in buyer interest. It’s not a market turnaround, but it suggests that a more balanced market between buyers and sellers might be on the far horizon.
It could also be a slight relief for some buyers looking for a home during the last two months of 2020.
“The number of buyers in the market remains well above the seasonal norm, but this week’s data shows sellers may be losing some of their grip when it comes to having the upper hand,” says Javier Vivas, director of economic research for realtor.com.
“For the first time since June, we saw an unseasonably large share of price reductions and a slight softening in buyer demand,” he adds. “Months of double-digit price gains and a record low number of homes for sale may finally be translating into buyer fatigue in many markets. If this continues, we may see price reductions ramp up and quick home sales ease through the end of the year.”
- New listings had the biggest improvement since the start of the pandemic – a “significant increase over the previous week.”
- Newly listed homes were down 2% year-to-year, but that’s an improvement. For the week of Oct. 17, new listings were down 6% year-to-year.
- The total number of homes available for sale is still down 38% year-over-year, but the market has seen six consecutive weeks of steady or improving decline.
- The number of properties with price reductions is moving toward seasonal norms, suggesting price gains may begin to ease in the coming weeks. The share of price reductions reached 5.5% for the week of Oct. 24, an increase from the early pandemic period where price reductions averaged 3.7%. One year ago, price reductions averaged 6.5% seen at this time.
- Homes continue to sell quickly. The average time on the market is now two weeks less than a year ago.
Florida markets year-to-year comparison
- Cape Coral-Fort Myers – 11.2% higher list prices – 38% fewer listings – 16 fewer days on the market
- Deltona-Daytona Beach-Ormond Beach – 5.3% higher list prices – 42.7% fewer listings – 25 fewer days on the market
- Jacksonville – 0.7% higher list prices – 45.3% fewer listings – 16 fewer days on the market
- Lakeland-Winter Haven – 7.7% higher list prices – 30.2% fewer listings – 6 fewer days on the market
- Miami-Fort Lauderdale-West Palm Beach – 2.1% higher list prices – 17.2% fewer listings – no change in days on the market
- North Port-Sarasota-Bradenton – 4.2% higher list prices – 36.2% fewer listings – 19 fewer days on the market
- Orlando-Kissimmee-Sanford – 1.6% higher list prices – 20.9% fewer listings – 5 fewer days on the market
- Palm Bay-Melbourne-Titusville – 6.7% higher list prices – 41.7% fewer listings – 7 fewer days on the market
- Tampa-St. Petersburg-Clearwater – 8.3% higher list prices – 42.6% fewer listings – 14 fewer days on the market