Bidding wars eased as the number of homes on the market increased in May.



As latest indicators hinted at cooling marketit looks like at least one housing segment hit a tipping point in May.

Inventories of homes for sale are up 3.9% since April, according to Zillow, marking the first monthly increase since July 2020 and only the fifth since May 2019. Supply is still down 31.2% year on year, but this figure improved from 32.8% a month earlier.

The restocking is also in agreement with the borrower Fannie Mae. buying sentiment has bottomed out to the lowest point in the history of surveys and mortgages issue volume drops to a 13-month low, according to Black Knight. While some predicted more inventory will hit the market in June, the rapid easing of the pandemic restrictions started earlier.

“The steady increase in new listings seems to have finally begun to turn the tide, making a welcome turn towards more choice for buyers,” Zillow economist Trae Manhertz said in a report.The builders are in a hurry producing new homes, while widespread vaccination and increased confidence in the economy should help current owners feel more comfortable putting their homes up for sale. ”

According to the US Census Bureau, the seasonally adjusted annual rate of housing construction was 1.572 million in May, up 3.6% from the previous month and 50.3% year over year.

Inventories fell in only six of the top 50 housing markets, with the largest declines in Florida cities. In May compared to April, the offer for sale fell 6.4% in Miami, 3.4% in Orlando and 2% in Tampa. Meanwhile, Milwaukee topped the country with a 22.5% monthly gain, followed by growth of 15.8% in Austin, Texasand 13.7% in Seattle.

This does not mean that the market is still not scalded. Home price increases rose 13.2% per year and 1.7% per month – the highest level since Zillow began tracking in 1996. In addition, the average listing only lasted six days prior to contract signing, compared to seven days in April, and the average in May was just three. days in Cincinnati, Columbus, Ohio, and Kansas City, Missouri.

Although homes began to be unearthed at a breakneck pace, declining affordability reduced competition from home buyers in May and helped ease the supply crisis.

The war of applications happened on 70.4% of listings, falling from a record high in April The revised rate is 73.6%, according to Redfin, but still exceeds 52.7% in May 2020. This is the 13th consecutive month that more than half of the proposals on the market have submitted multiple applications.

Among the 50 largest metropolitan areas, Spokane, Washington witnessed the highest competition in May, with 86.7% of properties bidding. Raleigh, North Carolina is next at 84.5%, followed by 81.8% in Tucson, Arizona and 81.5% in Salt Lake City.

Competition in Jacksonville, Florida eased again as the number of wars between trades fell from 46.2% to 34.4%. Cleveland fell 51.6%, New York – 53.1%. and 57.2% Miami the rest of the cities were below 60%.

“After months of price increases and low inventory levels, some house hunters are fading into the background – either because they are undervalued or because they burned down, “said Redfin chief economist Daryl Fairweather in a separate report.” Americans are spending more of their money on things like travel and food. now that the restrictions on the pandemic are lifted. “


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