This year’s spring homebuying season has shifted towards the favor of homebuyers, heating up the nation’s tightest housing markets.
In fact, according to a recent article from Bloomberg, inventory in previously hot areas like California is piling up, giving potential buyers an extra edge.
San Jose, at the heart of California’s Silicon Valley, had the biggest gain in inventory in the first quarter, jumping 55% from a year earlier, according to a study by Trulia of the 50 largest metropolitan areas. Seattle, Salt Lake City and San Francisco followed. At the same time, the number of listings is shrinking in cheaper markets, led by Washington; Baltimore; Kansas City, Missouri; and Oklahoma City.
Homes in many previously hot areas are piling up as demand cools. Buyers stepped back last year after a spike in mortgage rates exposed an affordability crisis, especially in western urban centers where bidding wars were the norm. Now, even as borrowing costs have `dropped back down, sales have been slow to rebound.
And Trulia’s right, according to the Census Bureau and the Department of Housing and Urban Development, new home sales declined 6.9% in January.
But although the nation’s supply of listings has dropped across the country, Bloomberg notes it differs on the local level.
According to the article, inventory has grown in more than half the 50 largest metros, including Los Angeles, Denver, Nashville, Atlanta, Dallas and Boston.
RE/MAX’s National Housing Report revealed that although home sales retreated 11% on an annual basis, inventory climbed 6.4% year-over-year in January.
“Underlying demand remains solid overall, as evidenced by widespread price increases,” RE/MAX CEO Adam Contos said. “So the housing market, while not markedly busy in January, remains relatively healthy. Furthermore, with interest rates stabilizing and home-price increases slowing, the spring selling season shapes up to be as interesting as any we have seen in years.”