After bottoming out throughout the COVID-19 pandemic, active housing inventory recorded its first gain since 2019 at the start of May, though homes for sale are still limited nationwide, the CalculatedRisk Newsletter reports. Year-over-year inventory was down 30% from 2019 levels at the start of the year, but current year-over-year supply is unchanged from mid-2019.
As the housing market slows amid rising mortgage rates, inventory will be a determining factor in a post-pandemic economic recovery. If housing supply continues to grow as prices decelerate, previously priced-out buyers could make a strong return to a more balanced market.
Realtor.com has monthly and weekly data on the existing home market. Here is their weekly report released this morning from Chief Economist Danielle Hale: Weekly Housing Trends View — Data Week Ending May 7, 2022.
Active inventory grew for the first time since 2019. While the size of the improvement rounded to 0%, this week’s data [marks] the first time that inventory figures weren’t lower than the previous year since June 2019. Our April Housing Trends Report showed that the active listings count remained 60 percent below its level right at the onset of the pandemic.