Housing Inventory in This Florida City Spiked Most, But Which in the Top 10 Are Cheapest?
Housing inventory has been one of the pain points in the real estate market for homebuyers for some time now. This is partly due to high mortgage rates, which have created a “lock-in” effect, making homeowners hesitant to list the home they secured with a much lower rate a few years back.
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As of Feb.1, the 30-year mortgage rate ticked down to 6.63% — down from 6.69% the previous week — according to Freddie Mac.
“Although affordability continues to impact homeownership, the combination of a solid economy, strong demographics and lower mortgage rates are setting the stage for a more robust housing market,” Sam Khater, Freddie Mac’s Chief Economist, said in a press release.
In turn, Realtor.com economist Jiayi Xu said there has been a positive uptick in homebuyers’ and sellers’ activities.
“The recent rise in listing activity suggests that sellers are closely monitoring mortgage rates and adjusting their selling strategies accordingly,” said Xu. However, it was noted that despite the promising increase in listing activity, inventory is likely to remain low as sellers may not respond as swiftly as anticipated.
“In other words, a more substantial improvement in mortgage rates is necessary to attract more sellers to the market,” added Xu, noting that if for-sale inventory fails to meet the demand from buyers, there is a possibility that prices may start to climb once again, contributing to the persistence of higher home prices.
Against this backdrop, some locations are seeing an uptick in inventory, such as Cape Coral, Fla., which saw an eye-popping 99.3% year-over-year inventory increase, according to Realtor.com.
Danielle Hale, chief economist at Realtor.com, stated this specific area saw the largest increase in inventory as it had a significant amount of recovery in 2023 after Hurricane Ian tore through the area in September 2022.
“As rebuilding efforts were underway, home prices have steadied in the area. The number of homes on the market has grown, giving buyers more options and slowing the time on market, but homes continue to sell a bit faster than was common in 2017-2019,” added Hale.
Now, however, when it comes to affordability, increased inventory and prices don’t necessarily walk hand in hand. Here are the 10 top cities Realtor.com has identified as having had the biggest jump in inventory, in order of affordability (median listing price):
1. Mobile, Ala.
Median listing price: $249,900
Year-over-year inventory increase: 30.3%
2. Lafayette, La.
Median home list price: $270,000
Year-over-year inventory increase: 32.1%
3. Gulfport, Miss.
Median home list price: $294,950
Year-over-year inventory increase: 35.7%
4. Fort Wayne, Ind.
Median home list price: $299,900
Year-over-year inventory increase: 27%
5. Little Rock, Ark.
Median home list price: $299,900
Year-over-year inventory increase: 30.7%
6. Fayetteville, N.C.
Median home list price: $309,706
Year-over-year inventory increase: 42.2%
7. Memphis, Tenn.
Median home list price: $317,990
Year-over-year inventory increase: 28.5%
8. Corpus Christi, Texas
Median home list price: $359,000
Year-over-year inventory increase: 34.1%
9. Cape Coral, Fla.
Median home list price in December: $475,415
Year-over-year inventory increase: 99.3%
10. Eugene, Ore.
Median home list price: $522,450
Year-over-year inventory increase: 46.7%
Tips for Buyers in These Locations
While buyers looking to purchase a home in these areas have more options, and which could translate to more time to thoughtfully consider decisions, being prepared to move fast will always give an edge, said Hale. “Taking a look at your budget before you begin shopping, so that you are really confident in your target home price and what it will cost can help.”
She added that once you feel good about your budget, getting pre-approved for a mortgage can be an extra check and you’ll want the pre-approval to include with any purchase offers you submit.
“Finally, when you start shopping, be sure to give some thought to what is a must-have versus nice-to-have and use online tools to personalize your home search so that you’re not overwhelmed and distracted by options that aren’t a good fit and can really hone in on the homes that are good matches,” she added.
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