Inventory growing, more discounts says realtor.com

Research shows signs of housing market slowdown

Inventory growing, more discounts says realtor.com

December brought further evidence that the housing market is slowing down in some markets across the US.

Realtor.com says that inventory gained 5% nationwide but in some of the largest metros there was a 10% hike in homes available. There were also more price reductions and homes taking longer to sell in some markets.

"Sellers are adjusting their strategies, especially in slowing, pricey markets with growing availability of homes for sale," said Danielle Hale, chief economist for realtor.com. "Although buyers may not find a bargain, the price discounts and recently lower borrowing costs may entice upper-tier buyers back into the market. By contrast, entry-level shoppers continue to contend with declining availability of homes for purchase, albeit at a slower rate."

Price reductions in largest markets

The share of listings with a price reduction increased to 15% in December 2018 compared to 13% a year earlier.

This rise was driven by increased price reductions in 38 of the top 45 largest markets, led by Charlotte, N.C., which saw a 10 percentage point rise to 24%. San Jose (+10 percentage points), Tampa (+9pp), Phoenix (+9pp) and Seattle (+8pp) completed the top 5.

Despite reductions, the median US listing price grew 7% year-over-year to $289,000 in December - lower than last year's increase of 8%. Only 11 markets outpaced the national growth rate including Milwaukee (+14%), Indianapolis (+12%), and Kansas City, Mo. (+12%).

The steepest declines in median listing prices were felt in San Jose, Calif., and San Francisco, which were down 12% and 4%, or $130,000 and $33,000, respectively.

Top 45 Metros*

Active
Listing
Count YoY

New Listing
Count YoY

Median
Listing
Price YoY

Price
Reduced
Count YoY

Price
Reduced
Share Y-Y

Median
Days on
Market Y-Y

San Jose-Sunnyvale-Santa Clara, Calif.

158%

-9%

-12%

381%

10%

14

Seattle-Tacoma-Bellevue, Wash.

96%

2%

11%

203%

8%

10

San Francisco-Oakland-Hayward, Calif.

74%

4%

-4%

203%

7%

6

San Diego-Carlsbad, Calif.

50%

14%

0%

53%

0%

3

Portland-Vancouver-Hillsboro, OR-Wash.

33%

-2%

1%

55%

3%

6

Los Angeles-Long Beach-Anaheim, Calif.

33%

10%

0%

92%

5%

5

Dallas-Fort Worth-Arlington, Texas

23%

1%

-2%

37%

2%

6

Boston-Cambridge-Newton, Mass.-N.H.

21%

9%

2%

57%

4%

1

Tampa-St. Petersburg-Clearwater, Fla.

20%

6%

0%

65%

9%

-1

Nashville-Davidson--Murfreesboro--Franklin, Tenn.

18%

-5%

-1%

49%

4%

6

Riverside-San Bernardino-Ontario, Calif.

18%

3%

3%

51%

4%

5

Detroit-Warren-Dearborn, Mich.

17%

5%

6%

54%

5%

-2

Jacksonville, Fla.

16%

-4%

-1%

35%

3%

1

Atlanta-Sandy Springs-Roswell, Ga.

16%

17%

4%

27%

2%

-4

Orlando-Kissimmee-Sanford, Fla.

13%

-9%

2%

44%

5%

-4

Houston-The Woodlands-Sugar Land, Texas

13%

19%

-2%

13%

0%

0

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

13%

11%

9%

37%

2%

-3

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

12%

7%

3%

34%

3%

-2

Austin-Round Rock, Texas

12%

6%

-3%

15%

0%

-1

Raleigh, N.C.

11%

2%

1%

2%

-1%

5

Charlotte-Concord-Gastonia, N.C.-S.C.

11%

3%

-1%

93%

10%

-6

Miami-Fort Lauderdale-West Palm Beach, Fla.

10%

5%

0%

34%

3%

1

San Antonio-New Braunfels, Texas

7%

9%

1%

0%

-2%

0

Hartford-West Hartford-East Hartford, Conn.

6%

5%

0%

-6%

-2%

4

Richmond, Va.

5%

-15%

3%

26%

3%

-10

Buffalo-Cheektowaga-Niagara Falls, N.Y.

4%

60%

5%

78%

8%

-3

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

3%

10%

3%

21%

2%

-3

Kansas City, Mo.-Kan.

3%

-11%

12%

17%

2%

5

Baltimore-Columbia-Towson, Md.

3%

8%

5%

26%

4%

0

Phoenix-Mesa-Scottsdale, Ariz.

1%

8%

3%

39%

9%

-4

Cincinnati, Ohio-Ky.-Ind.

1%

8%

9%

54%

6%

-6

Louisville/Jefferson County, Ky.-Ind.

1%

2%

9%

6%

1%

-6

New Orleans-Metairie, La.

0%

-23%

2%

20%

3%

4

Virginia Beach-Norfolk-Newport News, Va.-N.C.

-1%

-6%

4%

-35%

-5%

-4

Memphis, Tenn.-Miss.-Ark.

-1%

-6%

9%

33%

5%

-4

Washington-Arlington-Alexandria, DC-Va.-Md.-W.Va.

-2%

4%

1%

10%

2%

-1

Cleveland-Elyria, Ohio

-3%

4%

7%

37%

5%

-6

St. Louis, Mo.-Ill.

-3%

-14%

8%

4%

1%

4

Rochester, N.Y.

-4%

35%

9%

44%

6%

3

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

-5%

7%

5%

1%

1%

-6

Milwaukee-Waukesha-West Allis, Wis.

-6%

4%

14%

27%

4%

-11

Pittsburgh, Pa.

-8%

7%

2%

21%

3%

-4

Oklahoma City, Okla.

-9%

-7%

6%

3%

2%

-2

Birmingham-Hoover, Ala.

-9%

-3%

10%

7%

2%

-12

Indianapolis-Carmel-Anderson, Ind.

-9%

-12%

12%

21%

6%

1

*Columbus, Ohio, Denver, Las Vegas, Providence-Warwick, R.I., and Sacramento, Calif. were excluded due to data revisions or data unavailability.

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