Realtor.com is just out with its latest monthly market report, which found that while home prices remained relatively stable year-over-year this October, limited inventory continues to hamper homebuyers as the number of homes actively for sale shrank on an annual basis for the fourth month in a row. Active inventory still remained well below typical 2017-2019 levels and is down annually across the majority of the largest metros, although a few Southern metros saw significant gains.
Also of note, the share of price reductions continued to grow on a monthly basis, indicating that home prices could potentially soften in the coming months.
“The current housing market continues to challenge homebuyers and sellers alike, but we do see signs of adjustment,” said Danielle Hale, Chief Economist at realtor.com. “While record-high mortgage rates are putting off many would-be buyers, decreases in both inventory and time homes spend on the market shows that some buyers are moving quickly to lock in rates before they can go any higher. Buyers did see some measure of relief in stable home prices this month, and we’ll be watching the rising share of listings with reduced prices to see how that impacts prices in the near future.”
Pending listings, the number of homes under contract but not yet sold, declined 7.6 percent compared to the same time last year.