Sparse housing supply coupled with strong buyer demand left many homebuyers frustrated as rates continued to inch up and buyers felt the heat to buy now.
However, according to data from Realtor.com, as the hot spring buying season moves into summer, some regions are seeing a replenishing of for-sale homes as sellers begin to respond to pent up demand.
This is a relief for many after housing inventory hovered around levels not seen in nearly 10 years even as recent as three months ago.
In May, national inventories increased by 5.82% from April and median list price rose 2.10%. This is significantly healthier than the 1.77% inventory increase and the .48% improvement in median list price from April to May in 2012.
Hot markets such as Sacramento and Stockton are beginning to balance out as bursts of listings begin to restock depleted inventories. This increase in inventory indicates the slow start of a less volatile market and a greater balance between supply and demand.
“We are seeing large regional markets across the country leading the way to national recovery. These regions are acting as a microcosm for what’s slowly happening in the larger real estate market,” said Steve Berkowitz, chief executive officer of Move.
He added, “Overall, we’re seeing seller confidence beginning to respond consumer demand. Nationally, there are more homes going on the market for a shorter amount of time. And this is happening in our hot markets on a much larger scale.”
Stockton-Lodi, Calif., and Sacramento led the inventory growth with a 37.06% and 35.18% increase, respectively. Daytona Beach, Fla., and San Jose followed closely with a 21.97% and 17.27% growth.
California markets continued to lead the country with median list price increases, followed by Phoenix, Detroit, Reno, Jacksonville and Orlando.
Nationwide, the median age of inventory dropped by 13% in comparison to May of last year.