In the midst of shifting mortgage rates that have squeezed the housing market, the latest figures unveil a trio of upbeat trends: a boost in home inventory, steady prices, and an uptick in price slashes, painting a hopeful picture for house hunters.
The freshest monthly housing report from Realtor.com® shows that April enjoyed a notable surge in homes for sale—up 30.4% from last year, continuing a six-month wave of growing inventory. This influx of new listings, climbing 12.2% over the previous year, has broadened the choices for those diving into the spring market.
Danielle Hale, Chief Economist at Realtor.com®, spotlighted this expansion in market inventory, particularly pointing out that “Sellers continued to list homes at a greater rate than last year, leading to a promising rise in more affordable homes for sale, especially in the South.”
Home Prices Remain Steady
Despite the seasonal increase in home prices—from $424,900 in March to $430,000 in April—prices have remained relatively stable year-over-year. This stability presents a mixed bag for market participants. “For some buyers, especially those hoping for prices to drop significantly to improve affordability, this flat price trend might be disappointing. However, in a period where affordability is generally low, stable pricing helps correct market excesses,” explained Hale.
Another positive development for budget-conscious buyers is that some sellers, noting the lukewarm market reactions, are adjusting their expectations and lowering their prices. Indeed, homes with price reductions in April rose to 15.5% from 12.3% in the same month last year.
The South Dominates in Inventory Growth
The Southern United States is emerging as an especially appealing market for homebuyers. This region accounted for 56.7% of all available inventory in April 2024, including the highest number of new listings at 19.7%. In contrast, inventory growth was more modest in other regions, with the Midwest increasing by 18.4%, the West by only 7.5%, and the Northeast by a mere 2.9%.
Florida cities like Tampa, Orlando, and Jacksonville saw some of the most significant inventory increases, with rises of 69.5%, 64.2%, and 59.1% respectively.
Homes priced between $200,000 and $350,000 have seen the most substantial growth, surging by 41.0% compared to last year, driven largely by the South. This price range typically includes attached homes such as condos, townhouses, and row homes.
Inventory Increases Across Major Cities
April was a robust month for most of America’s largest metros, with 45 of the 50 seeing an increase in listings. The most significant new listings were recorded in Seattle (+46.5%), San Jose, CA (+40.6%), and Austin, TX (+36.1%).
Despite these increases, only three metros reported more newly listed homes than the pre-COVID-19 levels. The future trajectory of inventory growth may hinge on whether potential sellers feel comfortable listing their homes amidst persistently high mortgage rates.
The Spring Market’s Vibrancy
Even with challenges from high mortgage rates, the housing market this spring remains active. Homes are selling relatively quickly, spending an average of 47 days on the market—two days fewer than last April and nine days fewer than the pre-pandemic period.
As the spring housing market heats up, the decision to buy or sell remains deeply personal, linked to individual economic circumstances. “It’s a challenging market,” Hale acknowledges, “and it’s perfectly reasonable for some to decide this isn’t the right time to engage.” Whether more participants will enter the market this season remains to be seen, but the current trends provide a cautiously optimistic outlook.
