When assessing home price momentum, it's important to monitor active listings and months of supply. If active listings start to rapidly increase as homes remain on the market for longer periods, it may indicate potential future pricing weakness. Conversely, a rapid decline in active listings could suggest a market that is heating up.
National active listings are on the rise (up 22% between December 2023 and December 2024). This indicates that homebuyers have gained some leverage in many parts of the country over the past year, with some markets even feeling like buyers' markets on the ground.
Generally speaking, local housing markets where active inventory has returned to pre-pandemic levels have experienced softer home price growth (or outright price declines) over the past three years. Conversely, local housing markets where active inventory remains far below pre-pandemic levels have generally experienced stronger home price growth over the past three years.
Among the states with the biggest inventory jumps: Florida. In Florida, the biggest inventory increases initially over the past two years were concentrated in sections of Southwest Florida. In particular, in markets like Cape Coral, Punta Gorda, and Fort Myers, which we've seen significant changes.
Collection
[
|
...
]