Realtor.com Reports Weekly Active Inventory Up 36% Year-over-year; New Listings Down 13%
by Calculated Risk on 10/27/2022 12:33:00 PM
Realtor.com has monthly and weekly data on the existing home market. Here is their weekly report released today from Chief Economist Danielle Hale: Weekly Housing Trends View — Data Week Ending Oct 22, 2022. Note: They have data on list prices, new listings and more, but this focus is on inventory.
• Active inventory continued to grow, increasing 36% above one year ago. In last week’s Housing Trends View, which marked the first big increase in the active inventory trend since July, we gave a helpful summary of the historical context and timing of recent inventory developments. This week we saw another sizable step up in the active inventory trend (from 34% last week to 36% this week), even as new listings remain low, and the driving factor is the same: climbing mortgage rates, which were very near 7% last week and are likely to top that mark this week.
• New listings–a measure of sellers putting homes up for sale–were again down, dropping 13% from one year ago. This week marks the sixteenth straight week of year over year declines in the number of new listings coming up for sale. This week’s decline was somewhat smaller than last week’s, but still means fewer fresh options for home shoppers in the market. Seasonally, fewer homeowners contemplate a home sale as the temperature cools and the holidays approach, but this kind of change in the year over year trend signals a cooling that’s more than just seasonal.
Here is a graph of the year-over-year change in inventory according to realtor.com.
Note the rapid increase in the YoY change earlier this year, from down 30% at the beginning of the year, to up 29% YoY at the beginning of July.
Then the Realtor.com data was stuck at up around 26% to 30% YoY for 14 weeks in a row. This was due to the slowdown in new listings, even as sales had fallen sharply.
Now YoY inventory is increasing again with even higher mortgage rates, suggesting sales are off more than new listings.