Home Inventory Rise Due To Softening Demand
Despite an increase in the total pool of for-sale inventory, the number of new listings on the housing market has fallen year-over-year in each of the past four months, according to the March Zillow® Real Estate Market Report.
Overall inventory in the U.S. is 1.2% higher than in March 2018, but new listings fell 6.1% over the same period. And homes are staying on the market for longer – the median time on market increased four days in February from a year prior, the first such increase in four years and the largest since 2011. These trends indicate that the inventory growth is driven largely by cooling demand, not more home sellers.
Home values in San Jose, Calif., the most expensive of the 35 largest housing markets in the country, fell 0.2% from this time last year. This is the first time in four years that home values have depreciated on a year-over-year basis in any of the top 35 markets, and the first drop in San Jose in seven years.