Analysts at LendingOne looked over the latest inventory data to better understand what could await real estate investors over the coming year.
LendingOne’s top-line findings:
- The number of homes for sale is rising in most of the country on a year-over-year basis. Investors out shopping are seeing more leverage, in most markets, now than two years ago.
- Inventory for sale on a national level is still limited, which explains why spiked mortgage rates haven’t created more price declines thus far.
- Active listings remain tightest across markets in the Northeast and Midwest, while there’s greater softening happening in parts of the Southwest, including many Texas markets, and the Southeast, including many Florida markets.
In June 2024, there were 839,992 national active listings on Realtor.com, showing a 46% increase from June 2022 levels (573,650 listings) and a 37% increase from June 2023 (614,326 listings).
The 5 states that have seen the biggest increase in active inventory for sale over the past 12 months:
- Florida: +71%
- Vermont: +62%
- Arizona: +54%
- Georgia: +53%
- Hawaii: +50%
However, national active listings in June 2024 (839,992 listings) were still -31% lower than the pre-pandemic levels of June 2019 (1,219,807 listings). That lack of active listings is a core reason that strained affordability and spiked mortgage rates haven’t translated into a greater pullback in national home prices.
The 5 states where inventory is still most below pre-pandemic levels:
- Connecticut: -76%
- New Jersey: -69%
- Illinois: -67%
- Vermont: -67%
- Rhode Island: -64%
Just these 3 states have seen inventory climb above pre-pandemic levels:
- Texas: +5%
- Idaho: +4%
- Florida: +0.4%