2024- Will R.E. Inventory Growth Continue to Accelerate?"

The increase in sellers entering the real estate market and the growth in new listings and inventory can indicate several trends and developments within the real estate landscape. Here's a detailed breakdown of what this means and where it's happening:

Trend Overview:

• Sellers Returning: Sellers who may have been hesitant to list their homes previously due to uncertainties like the pandemic, economic conditions, or other personal reasons are now feeling more confident.
• New Listing Volume Increase: The 18% increase in new listing volume this week compared to a year ago suggests a surge in sellers deciding to put their homes on the market. This could be due to various factors, including rising home prices, favorable market conditions, and increased demand from buyers.
• Gradual Inventory Growth: The steady climb of about 1% per week in total available inventory indicates a growing pool of homes for sale. This is significant, especially considering that last year during the same period (April), inventory was still declining.
• Anticipated Acceleration: The expectation of accelerating inventory growth in the second quarter further supports the notion that more homes will be available for sale. This is a positive sign for prospective buyers who have been facing limited options in recent years.

Reasons Behind the Trends:

Several factors could be contributing to this shift in the real estate market:

1. Favorable Market Conditions: Low mortgage rates and a relatively stable economy may be encouraging more sellers to take advantage of the market.
2. Price Appreciation: Rising home prices mean that sellers can potentially fetch higher profits for their properties.
3. Pent-Up Demand: Buyers who were previously unable to find suitable homes due to low inventory may now be more active in the market.
4. Return to Urban Areas: Some sellers who had moved away from urban centers during the pandemic might be returning, putting their homes on the market.
5. Job Market Improvements: As the job market improves and people feel more secure in their employment, they may be more willing to make a move.

Where This Is Happening:

The increase in seller activity and inventory growth is likely happening across various regions, but certain areas might be experiencing these trends more prominently:

1. Urban Centers: Cities and urban areas, which saw a mass exodus during the pandemic, could be seeing a return of sellers as people move back for work or lifestyle preferences.
2. Suburban Markets: Suburban areas, which experienced increased demand during the pandemic, may now see a surge in listings as sellers capitalize on higher prices.
3. Popular Metropolitan Areas: Real estate markets in popular metropolitan areas with strong job markets and amenities may see significant seller activity.
4. Secondary Home Markets: Vacation and second-home markets might also be experiencing an increase in listings as owners decide to sell or upgrade their properties.
5. Tech Hubs: Cities and regions with a strong tech presence, such as Silicon Valley, Seattle, and Austin, could see notable increases in new listings as tech workers consider moving or upgrading their homes.

Implications for 2024:

The signals of rising inventory and increasing seller activity suggest a potentially robust real estate market for 2024. Here are some implications:

• More Choices for Buyers: With more homes available for sale, buyers will have a wider selection to choose from.
• Competitive Market: Increased inventory could lead to more competition among sellers, potentially resulting in quicker sales and multiple offers.
• Balanced Market: The balance between supply and demand could lead to more stable pricing, benefiting both buyers and sellers.
• Opportunities for Move-Up Buyers: Homeowners looking to upgrade may find favorable conditions for selling their current home and purchasing a larger or more desirable property.

Overall, the trends of sellers returning to the market, increased new listings, and growing inventory are positive indicators for a dynamic and active real estate market in 2024. However, local market conditions can vary, so it's essential for buyers and sellers to stay informed about their specific areas.