One upside for the market slowdown is more inventory for shoppers. According to Realtor.com’s June market report, supply grew faster than ever last month.
Active inventory jumped 18.7 percent year-over-year as new listings surpassed typical pre-COVID levels. Inventory was up 8 percent compared to May 2022.
“Our June data shows the inventory recovery accelerated, posting the second straight month of active listings growth in nearly three years. We expect these improvements to continue, as predicted in our newly-updated 2022 forecast,” said Danielle Hale, Chief Economist for realtor.com. “While we anticipate that more inventory will eventually cool the feverish pace of competition, the typical buyer has yet to see meaningful relief from quickly selling homes and record-high asking prices. However, a deeper dive into June’s inventory gains by square footage reveals potential opportunities for move-up buyers, as newly-listed homes skewed larger. In other words, this first wave of supply improvements may be particularly opportune for summer sellers looking to upgrade from their starter homes, which could mean more equity to put towards purchasing a bigger property.”
In June, homes with at least 1,750 square feet accounted for more new listings (54.3 percent) than relatively smaller homes (45.7 percent). Active inventory increased in 40 of the 50 largest U.S. metros, led by Austin, Phoenix and Raleigh.