Blog > Inventory Is Now Declining in Key Markets
<div class="hs-featured-image-wrapper"> <a href="https://blog.altosresearch.com/inventory-is-now-declining-in-key-markets" title="" class="hs-featured-image-link"> <img src="https://blog.altosresearch.com/hubfs/AdobeStock_456770405.jpeg" alt="Inventory Is Now Declining in Key Markets" class="hs-featured-image" style="width:auto !important; max-width:50%; float:left; margin:0 15px 15px 0;"> </a> </div> <p>Unsold inventory in the two biggest housing markets in the country, Texas and Florida, declined this week - there are fewer homes for sale now than a week ago. Inventory seems to have peaked for the season and is slowly inching down.<br><br>There appears to be two reasons why we’re seeing a seasonal peak in unsold inventory now, when last year inventory in these states didn’t peak until the end of November. <br><br>First, interest rates are falling, whereas last year they were rising. As I’ve mentioned before, rising rates create rising inventory. We may finally be on the other side of that slope, making for better dynamics for potential buyers.<br><br>Withdrawals are on the rise too. We’re seeing 30-35,000 withdrawals each week now, where last year it was more like 25,000. This probably reflects seller discouragement in a low-demand market, pulling their listings to maybe wait until next year. And it also reflects that most homeowners in the country have cheap financing, so they can afford not to sell in unfavorable environments. <br><br>These two trends together are keeping a cap on inventory for the rest of the year, especially compared to last year.<br><br>Last year at this time inventory climbed at 1.3% for the week because rates were rising. This year rates are inching down and as we’ve discussed, this should lead to compressed inventory growth. So nationally the number of unsold homes on the market rose at less than 1% for the second week in a row. Inventory growth is slower than last year. This has implications for pricing, and for buyer competition and for transaction volume in the 4th quarter and in 2025.</p> <p><br>Every week Altos Research tracks every home for sale in the country. We analyze all the pricing, supply and demand, and all the changes in that data and we make it available to you before you see it in the traditional channels. If you aren’t using Altos market reports with your clients, your buyers and sellers, now might be the time to step up. Go to <a href="http://altosresearch.com" style="font-weight: bold;">altosresearch.com</a> and book a free consult with our team. Because everyone is worried about what’s happening right now. They need you to help them see clearly. The data we cover here in these national videos is available for every zip code in the US. Join us to dive in.<br><br>I’m Mike Simonsen, I’m the founder of Altos Research. Let’s look at the data for the week of August 26, 2024. <span style="font-weight: bold;">Please refer to the video below for all the charts I mention in this transcript!</span></p> <img src="https://img.chime.me/image/fs/chimeblog/20240828/16/original_64592e10-1c7f-4281-bb4c-5c0ab89ac4b9.gif?a=7754956&k=14&r=https%3A%2F%2Fblog.altosresearch.com%2Finventory-is-now-declining-in-key-markets&bu=https%253A%252F%252Fblog.altosresearch.com&bvt=rss" alt="" width="1" height="1" style="min-height:1px!important;width:1px!important;border-width:0!important;margin-top:0!important;margin-bottom:0!important;margin-right:0!important;margin-left:0!important;padding-top:0!important;padding-bottom:0!important;padding-right:0!important;padding-left:0!important; ">
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Catherine Abiera - Lumbres, ABR MRP C2EX AHWD
Broker Associate | License ID: EA100089425
Broker Associate License ID: EA100089425