Buyer Competition to Grow Fiercer in Fall - Real Estate, Updates, News & Tips

Buyer Competition to Grow Fiercer in Fall

While low mortgage rates have made it cheaper to buy a home, finding the right property remains a challenge for home buyers, realtor.com® reports in its October 2019 housing report. Would-be buyers are finding that a worsening inventory shortage is heating up competition in the housing market this fall.

“Owning a home continues to be a priority for buyers as we head into the cooler months of the year,” says George Ratiu, realtor.com®’s senior economist. “Driven by the tailwind of sub-4% mortgage rates, the steady demand for housing is drying marketing inventory at an accelerating pace. With dwindling supply, prices maintain their upward pressure, [exacerbating] affordability challenges for first-time buyers.”

Inventory nationwide fell by 6.9% year over year in October, realtor.com® reports. That equates to a loss of 98,000 listings compared to a year ago. Meanwhile, the median list price was $312,000, which is a 4.3 percent annual increase.

Economists say low mortgage rates prompted greater homebuyer demand in the spring, leaving available inventory depleted this fall. The volume of new listings coming onto the market has fallen by 3.4% since last year. The largest inventory declines have been in price points under $200,000. That segment posted a 15.2% drop year over year in October. The mid-tier inventory—homes priced between $200,000 and $750,000—fell by 4.3% annually, while the nation’s priciest homes—those selling for more than $750,000—rose 1.3% year over year, realtor.com® reports.

Inventory declined by 5.3% in the nation’s 50 largest metros. The areas posting the largest drops were San Diego-Carlsbad, Calif. (down 20.1%); Rochester, N.Y. (also down 20.1%); and Phoenix-Mesa-Scottsdale, Ariz. (down 20%).

MetroActive
Listing
Count
YoY
Median
Listing
Price
Median
Listing
Price
YoY
Median
Days on
Market
Median
Days on
Market
Y-Y
San Diego-Carlsbad, Calif.-20.1%$715,0007.0%448
Rochester, N.Y.-20.1%$202,50011.0%44-8
Phoenix-Mesa-Scottsdale, Ariz.-20.0%$385,94513.0%43-2
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.-19.6%$479,9006.7%43-4
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.-19.4%$299,00012.9%61-4
Cincinnati, Ohio-Ky.-Ind.-18.6%$266,5006.6%51-5
Oklahoma City, Okla.-17.6%$253,2507.9%53-8
Memphis, Tenn.-Miss.-Ark.-17.3%$231,4586.2%57-7
Virginia Beach-Norfolk-Newport News, Va.-N.C.-17.3%$299,9007.1%61-4
Providence-Warwick, R.I.-Mass.-16.2%$377,0005.6%52-2
Nashville-Davidson--Murfreesboro--Franklin, Tenn.-15.0%$369,9002.9%37-5
Riverside-San Bernardino-Ontario, Calif.-13.9%$410,0003.4%535
Birmingham-Hoover, Ala.-13.5%$255,48815.4%67-9
Seattle-Tacoma-Bellevue, Wash.-12.9%$587,4755.5%436
Pittsburgh, Pa.-12.7%$197,2509.6%67-7
St. Louis, Mo.-Ill.-12.6%$224,6644.5%660
Austin-Round Rock, Texas-12.4%$356,4501.9%59-2
Sacramento--Roseville--Arden-Arcade, Calif.-12.2%$488,9448.9%504
Hartford-West Hartford-East Hartford, Conn.-11.7%$279,9003.7%64-9
Buffalo-Cheektowaga-Niagara Falls, N.Y.-10.2%$199,9005.3%45-4
Baltimore-Columbia-Towson, Md.-9.4%$325,0001.8%53-3
Orlando-Kissimmee-Sanford, Fla.-9.3%$319,9003.7%633
Portland-Vancouver-Hillsboro, Ore.-Wash.-9.1%$467,450-0.5%511
Charlotte-Concord-Gastonia, N.C.-S.C.-8.7%$335,2500.7%57-6
Columbus, Ohio-8.2%$279,9005.7%45-7
Tampa-St. Petersburg-Clearwater, Fla.-7.1%$279,9004.5%603
Indianapolis-Carmel-Anderson, Ind.-6.7%$260,0008.4%562
Kansas City, Mo.-Kan.-6.5%$299,7003.4%57-4
New Orleans-Metairie, La.-6.5%$284,4501.6%72-3
Milwaukee-Waukesha-West Allis, Wis.-6.4%$288,9006.1%48-1
Jacksonville, Fla.-6.1%$309,9003.3%702
Cleveland-Elyria, Ohio-5.7%$193,7004.7%63-2
San Jose-Sunnyvale-Santa Clara, Calif.-5.4%$1,108,9441.1%4211
Miami-Fort Lauderdale-West Palm Beach, Fla.-5.4%$400,0000.3%945
Boston-Cambridge-Newton, Mass.-N.H.-3.9%$587,4507.0%484
Los Angeles-Long Beach-Anaheim, Calif.-3.0%$850,98413.9%5514
San Francisco-Oakland-Hayward, Calif.-2.9%$939,9444.6%354
Richmond, Va.-2.0%$319,4756.5%53-5
Louisville/Jefferson County, Ky.-Ind.-2.0%$252,450-2.9%47-3
Raleigh, N.C.-2.0%$365,0001.5%60-11
New York-Newark-Jersey City, N.Y.-N.J.-Pa.-0.5%$555,0003.1%67-2
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.0.3%$315,0001.0%50-1
Houston-The Woodlands-Sugar Land, Texas0.4%$309,945-1.6%63-1
Dallas-Fort Worth-Arlington, Texas3.8%$341,875-0.3%57-1
Denver-Aurora-Lakewood, Colo.4.3%$495,0003.1%436
Atlanta-Sandy Springs-Roswell, Ga.4.5%$321,0360.5%540
Detroit-Warren-Dearborn, Mich5.1%$239,4003.3%461
San Antonio-New Braunfels, Texas8.8%$289,695-1.0%62-3
Las Vegas-Henderson-Paradise, Nev.14.0%$319,950-1.4%4911
Minneapolis-St. Paul-Bloomington, Minn.-Wis.15.7%$339,900-2.9%441

Source: Realtor.com®

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