Housing inventory is up — but there’s still room for improvement

Inventory on solid uptick

Housing inventory finally seems to be turning around. According to the latest data, inventory has increased for three months running, with a 0.4 uptick in November alone.

A rising tide

According to new data from Zillow, November saw housing inventory jump 0.4 percent over the year, marking the third consecutive month that listings have increased.

In October, inventory rose 2 percent year-over-year, and in September, listings jumped 0.1 percent. Prior to September, inventory had been on a steady decline for almost four full years, according to Zillow Chief Economist Aaron Terrazas.

“The gains follow nearly four years of inventory declines that were far larger, including a nearly double-digit drop as recently as March 2018,” Terrazas said.

Inventory is highest on homes in the upper price tier. According to Zillow’s data, there were about twice as many homes for sale in the top third of the market than the bottom third in November.

For more housing inventory choices, look to pricier metros

A long road ahead

Despite the recent upticks, there’s still room for improvement, according to Terrazas.

“Low housing inventory, a major contributor to a runup in home prices in recent years, has risen for three consecutive months — but it is climbing at a slow rate, more akin to bumping along the bottom than growing in any meaningful way,” he said.

Major metros see a big jump in housing inventory

There may be hope for more inventory jumps in the future, though. Terrazas attributes the recent “sluggish” grow to rising rates in November. But in December, mortgage rates actually fell, bottoming out at 4.55 percent as of this week. That could encourage more sellers to list their properties and get in on the market.

Get today’s mortgage rates

Are you looking to take advantage of rising inventory and slowing home price growth? Then shop around and see what mortgage rates you qualify for today.