Led by gains in the share of mid-sized homes, Realtor.com predicts an uptick in first-time buyers is on the horizon, per it’s just-released April Housing Report.
Realtor.com analysts notes that housing supply appears to be on the rebound, given that active listings posted the smallest year-over-year declines since December 2019, down 12.2 percent. The share of mid-sized homes (1,750-3,000 square feet) posted the largest gains, up 2.34 percent year-over-year
Although new listings declined, so did the number of homes under contract, suggesting that softening demand is cooling the pace of home sales. As a result, the gap in active listings from last year continued to shrink.
“April data suggests a positive turn of events is on the horizon for weary buyers: If the trends we’re seeing now hold true, we could potentially see year-over-year inventory growth within the next few weeks,” said Danielle Hale, Chief Economist for realtor.com. “The key to this growth will be the continuation of softening buyer competition and an increasing number of sellers putting homes on the market. While home shoppers are still seeking relief from record-high asking prices and all-time low supply, when compared to the past two-plus years of double-digit annual inventory declines, an imminent rebound is welcome news – a real estate refresh, if you will. There’s a long uphill climb to balance, but it starts with heading in the right direction, and April data shows a lot of promise.”
Compared to the national rate, active listings declines from April 2021 were relatively smaller in the 50 largest metros, except for eight markets, led by Riverside (up 23.3 percent), Austin (up 16.5 percent) and Sacramento, (up 11.8 percent).