- Housing markets in Austin, Phoenix and Raleigh gained inventory.
- Among the major metros, they led the nation in stock growth.
- Active listings in the Austin area have increased 144% over the past year.
- These real estate markets are also experiencing more price reductions.
- It’s proof that those hot housing scenes are getting colder in 2022.
Shortage of inventory. This two-word phrase has appeared in countless real estate market reports over the past two years. In most cities across the country, a shortage of supply relative to demand has frustrated homebuyers and pushed home prices up like never before.
But now for the good news. We are starting to see some inventory growth in the housing market in major cities across the country. This trend is particularly visible in some of the hottest real estate markets, including Austin, Phoenix and Raleigh.
In fact, these three metropolitan areas have seen triple-digit increases in real estate listings over the past year. In the summer of 2022, they lead the nation in inventory growth.
Major inventory growth in these hot housing markets
On June 30, researchers at Realtor.com released a housing market update with data for the entire country and the 50 largest metropolitan areas. Among other things, this report showed how the number of property listings has changed over the past year.
It turns out that the real estate markets of Austin, Phoenix and Raleigh have seen the strongest inventory growth over the past year (measured by total active listings).
Austin, TX led the way with a whopping 144% increase in active listings. Phoenix, Arizona, and Raleigh, North Carolina ranked second and third with stock growth of 113% and 111%, respectively.
To quote the June 2022 report from realtor.com:
“Compared to June 2021, active inventory increased in 40 of the 50 largest US metros, led by Austin, Texas (+144.5%), Phoenix (+113.2%) and Raleigh, NC (+111 .7%).”
This is very good news for home buyers in Austin, Phoenix and Raleigh – as well as other major metropolises where inventory is rising. This trend should make it easier for buyers to find a home that fits their budget. It could also ease competition among buyers, after two years of frenetic activity in the real estate market.
Austin real estate market downturn in 2022
No matter how you measure it, the Austin, TX metro area has been one of the fastest growing real estate markets in the country for a few years now. But Austin’s real estate scene is finally showing signs of slowing down.
Recent data shows that homes listed for sale in the Austin-Round Rock metro area are staying on the market longer these days, compared to a year ago.
In fact, Austin was one of only 10 metro areas where “time in market” increased over the past year.
Of the 10 metro areas where median days on market increased over the past year, Austin saw the largest increase. In June 2022, homes listed for sale in this metropolitan area spent an average of 22 days on the market, six days more than a year earlier.
To quote the Realtor.com report again:
“Meanwhile, time on market was flat year-over-year in six markets and increased in ten metros, led by Austin (+6 days), Denver and Detroit (+4 days each). “
But make no mistake, Austin’s real estate market remains highly competitive. Tight supply conditions combined with a steadily growing population have made it one of the most competitive housing markets in the country. Slowly but surely, however, this is starting to change.
We will likely see further downturn in the Austin-area real estate market over the next few months, especially if inventory continues to grow.
Raleigh is seeing an increase in new registrations
Among the nation’s 50 largest metropolitan areas, Raleigh, North Carolina is seeing the third highest increase in total active real estate advertisements. But Raleigh has led the way when it comes to New listings (i.e. homes that have come on the market more recently).
According to Realtor.com’s Housing Market Report, the Raleigh metro area saw a 37% increase in new housing listings from June 2021 to June 2022. This means more and more homes are coming on the market, which should make things a bit easier. for home buyers in the Raleigh area.
Price reductions are more common in the Phoenix area
Phoenix is another one of those hot real estate markets that looks to be cooling off in 2022. In addition to seeing significant inventory growth over the past year, the Phoenix area housing market also has more price reductions. than a year ago.
In June of this year, nearly 30% of homes listed for sale in the Phoenix-Mesa-Scottsdale metro area saw a price reduction. Compared to a year ago, the share of price reductions increased by 22%. So he sees that sellers and their agents might be feeling a cooldown in the market.
Inventory growth is one of the main reasons sellers are starting to cut prices, in Phoenix and other real estate markets nationwide. Sellers these days have more competition from other owners trying to sell. They therefore have to be more flexible, which often results in lower prices.
Overall: Good news for frustrated homebuyers
This latest housing market report contained a host of positive trends for homebuyers across the country.
In highly competitive real estate markets like Austin, Phoenix and Raleigh, buyers are finally starting to take a breather as more properties become available.
We are also seeing a slowdown in business activity in major cities across the country. The short version is that it now takes longer to sell a house (on average), and there are fewer sales in many local housing markets. Overall, the real estate market is moving at a slower pace than 12 months ago.
At the same time, housing costs continue to rise in most cities across the country. For the remainder of 2022 and into 2023, we will likely see a deceleration in home price growth nationwide. Some housing markets may even see a decline in home values over the next year.
But for most cities in the United States, home prices will likely continue to climb through 2023. So some urgency might still be warranted, for those planning to buy in the near future.