Housing Market Shift: Listings Soar to Pre-Pandemic Levels

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Published Date 11/4/2024

Even if home prices have not fallen, it might be good to know that you’ve got more choices than a year ago. Realtor.com’s Julie Taylor reports the number of homes for sale is the highest since 2019, including in pandemic “boomtowns.”

The total number of homes for sale in October was 29.2% higher than the year before, marking the 12th consecutive month of growth. “Sellers continued to increase their activity this October. Total active listings increased to highs not seen since before the pandemic,” says Realtor.com® senior economist Ralph McLaughlin in a new monthly housing report. “We noted last month that the sharp decrease in mortgage rates in mid-August could lead to an increase in listings in the coming months as lower rates begin to entice the marginal homeowner to sell.”

Active home listings are up in all four regions of the U.S., the South in the lead with a whopping 34.0% increase, closely followed by the West at 33.6%, the Midwest at 19.8%, and the Northeast, which still saw a healthy uptick of 14.3%.

Taylor reports that Southern boomtowns that rose to prominence during the pandemic are once again making waves—with welcome surges in housing stock. Austin, TX, tops the list with a 40.1% jump in inventory, trailed by Memphis, TN, (+39.2%); and Orlando, FL, (+26.6%). These metro areas now boast listings that have surpassed pre-pandemic levels—a notable shift.

Metros that saw the largest increases in the number of homes for sale included San Diego, CA, at 63.5%; Seattle, WA, at 60.5%; and Denver, CO, at 59.5%.

Taylor also reports that home shoppers in search of fresh listings will have the most luck in the West, where there are 7.0% more newly listed homes than in October 2023. New listings also grew by 5.1% in the Midwest, 3.2% in the Northeast, and 2.9% in the South.

The metros that saw the largest increase in fresh listings compared with last year included Baltimore, MD, Washington, D.C., and Seattle.

“November and December are usually some of the colder months in the housing market, but it’s possible we’ll also see an increase in listing activity in these months after the uncertainty of the presidential election subsides,” says McLaughlin.

In a blow to budget-minded buyers, the median price per square foot continued to rise, increasing 2.1% in October compared with the year prior. Meanwhile, the price per square foot grew by an astonishing 50.5% on average since October 2019.

Bidding wars may still exist, but not in the numbers we recall from pandemic times. It seems that buyers may be able to take their time making an offer. As a result, the typical home spent 58 days on the market in October, eight days longer than the same time last year.

As for waiting to see what’s next, buyers who’ve been on the fence about entering the market may not want to take too long on their home-shopping journey, as the competition is poised to increase, according to McLaughlin. “Since most sellers also become buyers, an increase in new listings also means that there’s an increase in buyers,” he says. “We now expect homebuying activity to begin to tick higher on a year-over-basis through November and December, both because of falling rates as well as a low 2023 benchmark.”

Realtor, TBWS

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