May was a busy month for sellers!
In May, we saw a year-over-year increase in the number of homes for sale (active listings) for the first time since June 2019. Inventory was up 8% over last year. But when we compare it to May of 2020, there are still only half as many listed homes available
"Sellers still listed at rates 6.4% lower than typical 2017 to 2019 levels prior to the pandemic," wrote Sabrina Speianu, economic data manager at Realtor.com
This increase in active listings is due to the slight cooling in buyer demand -- with rising interest rates and record-high prices, some buyers are getting priced out of the market.
Prices reached new heights
"The May national medial listing price for active listings was $447,000, up to 17.6% compared to last year and up 35.4% compared to May 2020," reported Speianu.
One reason for the acceleration in listing prices could be the increase in the number of larger homes (1750+ square feet) going up for sale.
It's interesting to note, however, that the median price of pending listings (homes under contract) actually decelerated. "This indicates that the homes which buyers are choosing to buy tend to be less expensive," said Speianu, "and also suggests that
sellers have not fully adjusted their expectations to market conditions."
Read the May 2022 Housing Market Trends Report on Realtor.com