Inventory Peaks at Highest Levels Since COVID, Latest HouseCanary Report Shows
A Seller’s Market Environment Continues to be Evident in the Housing Market, but Neutralization is on the Horizon with Inventory Levels Continuing to Rise
Presumed September Interest Rate Cuts Is Anticipated to Free Buyers and Sellers from Previous Holding Patterns
HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its innovation and accuracy of real estate information, released its August Market Pulse Report, finding that inventory remains low from a historical perspective, however, it is now at the highest level since Covid.
HouseCanary previously reported that inventory levels were gradually approaching pre-Covid levels, and this sentiment remained unchanged in August as total inventory increased 28.7% from the same period last year. Additionally, contract volume in August 2024 across all price tiers increased compared to August 2023, suggesting a steadier housing market and evidence of demand from potential homebuyers, further demonstrating a seller’s market.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
“The past couple of years have seen a housing shortage nationwide. However, consistent with what we have seen throughout this summer, there have been signs pointing to normalization in the housing market since the pandemic when looking at inventory levels, pricing and contract volumes from a multiyear perspective. Notably, total inventory is up 28.7% from the same period in 2023, and up 9.3% from 2022, indicating improvements in the pool of available properties and an eventual neutralization of the housing market.
As we forecast for the back half of the year, we can expect the Fed to begin cutting interest rates at the next FOMC meeting after Powell’s remarks in Jackson Hole. If realized, we can anticipate increased contract volume during the fall season, should demand from prospective buyers remain persistent. Buyers and Sellers who have been sidelined from the market could just about be ready to get back in the game.”
Key Takeaways:
- Over the last 52 weeks, 2,635,853 net new listings were placed on the market, and 2,580,025 properties went under contract. This represents an increase of 5.3% and a decrease of 2.8%, respectively.
- Total inventory is up 28.7% from the same period in 2023, and up 9.3% from 2022. Inventory remains on the low side from a historical perspective, but is now at the highest levels since COVID.
- Median days on market stands at 42. This is up 13.5% from where it was one year prior at 37 days on market.
- Contract volume in August 2024 is up for all price tiers compared to August 2023.
- The median price of all single-family rental listings in the US was $2,606. On a year-over-year basis, the median price of all single-family rental listings is up 0.4%. Month-over-month, the median price of single-family rental listings is down 0.8%.
Source: HouseCanary
