1 month Housing market reset: 41 markets where the power is shifting to buyers Fast Company
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At the height of the pandemic housing boom, housing demand was so fierce that homes sold so quickly they barely registered as active inventory.
Indeed, in July 2021, there were just 546,686 U.S. active listings. That was a staggering 56% below the 1,239,534 active listings in July 2019. In July 2021, every single one of the nation’s 200 largest housing markets was below pre-pandemic 2019 inventory levels.
But we’re slowly starting to see a bounce back—national active listings in July 2024 came in at 884,273, down 29% from pre-pandemic 2019 active inventory levels.
ResiClub created a new chart to track the active inventory recovery across the country.
In July 2023, just eight of the nation’s 200 largest housing markets had active inventory that exceeded July 2019 levels.
As of July 2024, 41 of the nation’s 200 largest housing markets had active inventory that exceeded July 2019 levels.
Generally speaking, housing markets where inventory (i.e., active listings) has returned to pre-pandemic levels have experienced weaker home price growth (or outright declines) over the past 24 months. Conversely, housing markets where inventory remains far below pre-pandemic levels have, generally speaking, experienced stronger home price growth over the past 24 months.
Here’s an interactive map that shows the one-year shift:
And the following interactive map shows the markets that have—or haven’t—returned to pre-pandemic levels. Many of the areas that are above pre-pandemic inventory levels are located in the gulf region.
Back in June 2022, Fed Chair Jerome Powell told reporters that home buyers needed a “reset.”
“I’d say if you are a home buyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again,” said Powell. “We are well aware that mortgage rates have moved up a lot. And you are seeing a changing housing market. We are watching it to see what will happen. How much will it really affect residential investment? Not really sure. How much will it affect housing prices? Not really sure.”
While many parts of the country remained sellers’ markets even as rates spiked, some places might finally be seeing some type of “reset,” or at the very least some relief.