For the past two years, the U.S. housing market has been largely characterized by frenzied home sales, soaring costs, and an ever-widening supply deficit, but according to MarketWatch, conditions seem to be improving. Active inventory of homes for sale was up 55% in December 2022, and of those active listings, 14% saw their prices slashed at the end of the year.
Though mortgage rates remain above 6% and home prices are still historically high nationwide, slower listing price growth and increasing inventory could give prospective buyers more bargaining power in the year ahead, creating much-needed balance in the for-sale market.
Raleigh, N.C. saw the biggest increase in active inventory, up 226.2% from last December. Nashville, Tenn. also experienced a 226% increase in inventory, followed by Austin, Texas, which had a 187% increase in listings.
To be clear, however, most of the biggest 50 cities did not see a year-over-year increase in new listings. Homeowners are reluctant to sell in an environment where they may be compelled to cut prices, or offer concessions.
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