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Inventory data matters—a lot. If active listings begin to rise quickly, in theory, it can signal a weakening market. If active listings begin to fall quickly, in theory, it can signal a strengthening housing market.
As ResiClub reported recently, the number of active U.S. homes for sale in February 2024 (664,716) was up 15% on a year-over-year basis from February 2023 (579,264). However, active inventory for sale is still down 40%, compared to pre-pandemic February 2019 (1,102,660).
Regionally, however, the inventory shift varies quite a lot.
In Nevada, active listings are down 32% compared to the same time last year, as markets like Reno and Las Vegas tightened up following a brief home price correction in the second half of 2022.
Meanwhile, active listings are up 45.8% in Florida on a year-over-year basis, as Southwest Florida markets like Cape Coral and Punta Gorda, which were impacted by Hurricane Ian in September 2022 and home insurance shocks, continue to soften.
Click here to view an interactive version of the map below.
Here are the five states where active listings have increased the most compared to the same period a year ago:
- Florida: +45.8%
- Mississippi: +28.0%
- Louisiana: +28.0%
- Alabama: +27.0%
- Arkansas: +23.2%
Here are the five states where active listings have fallen the most on a year-over-year basis:
- Nevada: -32.0%
- Illinois: -9.8%
- New Jersey: -9.1%
- Idaho: -9.0%
- Rhode Island: -7.8%
Active listings can serve as a pulse of supply and demand in a given market. Generally speaking, housing markets where inventory (i.e. active listings) has returned to pre-pandemic levels have experienced weaker home price growth (or outright declines) over the past 20 months. Conversely, housing markets where inventory remains far below pre-pandemic levels have, generally speaking, experienced stronger home price growth over the past 20 months.
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