Throughout May, inventory continued to increase, as new homes flooded into the market in metros across the country. While inventory remains low from a historical perspective, total housing supply has continued to grow and is rapidly approaching high points seen in 2022, with total inventory up 22.3% from the same period in 2023. However, the interest rate shock is having the biggest impact on net new listing volume which remains sharply down year-over-year.
With mortgage rates still peaking, homeowners are also cautious about putting their homes up for sale and losing out on lower mortgage rates. This mortgage rate “lock-in” effect can be seen in a decrease in net new listings. Though total inventory has continued to rise, it's clear that buyers and sellers have yet to warm to the idea of jumping into the market. As we look ahead to June, the start of summer will likely remain somewhat quiet, as both hopeful homebuyers and those looking to sell have little incentive to enter the housing market.
Check out this month’s Market Pulse report for more insights into the current state of the housing market.
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