Real estate sees highest number of homes for sale since pre-pandemic

The real estate market is witnessing a significant increase in the number of homes for sale, reaching levels not seen since 2019. This trend is observed across the United States, including areas that experienced rapid growth during the pandemic.

In October, the total number of homes available increased by 29.2% compared to the previous year. This marks a full year of consecutive growth in home listings. Realtor.com® senior economist Ralph McLaughlin commented on this development: "Sellers continued to increase their activity this October. Total active listings increased to highs not seen since before the pandemic."

All four regions of the U.S. have reported an uptick in active home listings, with the South leading at a 34% increase. The West follows closely with a 33.6% rise, while the Midwest and Northeast saw increases of 19.8% and 14.3%, respectively.

Pandemic boomtowns such as Austin, TX; Memphis, TN; and Orlando, FL are experiencing notable increases in housing inventory—Austin leads with a 40.1% jump.

The surge in available homes is not solely due to old listings remaining unsold; newly listed homes have also risen by 4.9%. In particular, new listings grew significantly in Baltimore, MD (24.9%), Washington D.C., (19.4%), and Seattle (17.5%).

Despite more options for buyers, home prices remain unchanged from last year at $424,950 on average. However, McLaughlin notes that when considering smaller homes entering the market mix, asking prices have actually increased compared to last year.

Price per square foot has risen by 2.1% over the past year and has surged by an average of 50.5% since October 2019 in major metro areas like New York City and Boston.

Homes are taking longer to sell than they did previously—the typical property spent eight additional days on the market compared to last October—totaling an average duration of 58 days.

McLaughlin explains: "This marks the slowest October since 2019," but he also anticipates an uptick in buying activity through November and December due to falling mortgage rates and other factors.