Over the past six months, the average 30-year fixed mortgage rate has risen from 3.11% to 5.09%, and by all measures, the Fed’s inflation control methods appear to be working. Low inventory has been a driving factor of record-high home prices throughout the last several years, but between March 26 and May 7, nationwide inventory levels rose 10%, according to Fortune.
In the most recent six-week window, 83% of the nation’s 400 largest housing markets saw inventory levels rise, with the most gains reported in western states like Idaho, Nevada, Oregon, and Arizona. Despite more hopeful measures of housing supply rolling in from regional markets across the U.S., active inventory still remains far below pre-pandemic levels, so deceleration could take some time to leave its mark on a still heated housing market.
While inventory levels are rising fast percentage wise, they're still far below pre-pandemic levels. Look no further than Coeur d'Alene, which saw inventory spike 54% between late March and early May as it went from 242 to 373 active listings. However, that's still 62% below the 980 listings it had the first week of May 2019. Simply put: Even if the Great Deceleration picks up steam, it will take time before we're back to a pre-pandemic housing market.
Advertisement
Related Stories
Housing Markets
10 Metros Where Luxury Home Prices Have Risen the Least
You can still find a bargain—relative to other markets—on high-end homes in these locales, which have seen less luxury price growth
Housing Markets
These Housing Markets Are Seeing Higher Than Average Price Increases
The majority of metros where housing costs increased fastest are in the Northeast
Housing Markets
10 Housing Markets With the Highest Rate of Investor Homeownership
Cities with the highest share of investor homeownership are also the places seeing a slowdown in the market due to high costs