The real estate market in the United States is experiencing a significant shift, with new data from Redfin showing a spike in inventory and price cuts this spring. This could potentially hint at a surprise for the 2024 US real estate market. The median sale price of a single-family home in the US has reached an all-time high, with buyers now paying an average of $433,500, a significant increase from prices in 2017.
Experts believe that the recent increase in inventory levels could lead to a drop in record-high prices in certain areas around the country. While many have speculated about a housing crash in recent years, the key factor that was missing was inventory. Without an abundance of houses on the market, it is difficult to achieve downward pressure on prices.
According to Altos Research, there are currently 556,000 homes available for purchase across the US, a 32% increase from the same time last year. This increase in supply is a positive sign for buyers, as it indicates a potential shift in the market dynamics. However, it will take time for inventory levels to reach pre-pandemic levels, and in some cities like Austin, Texas, the housing market has already started to experience a decline in prices.
In Austin, home prices have been dropping since peaking in June 2022, driven by an increase in inventory levels. The city saw a 30% spike in inventory year-over-year in April 2024, indicating a significant shift in the market. This trend is reflected in the price cuts seen on listings, with some homes experiencing price slashes of up to 15%.
While the national statistics still show a tight market, it is important to consider the local dynamics of each city and neighborhood. Areas like downtown Austin have seen significant price drops, with some homes now selling for less than they were pre-pandemic. This variation in price and inventory levels highlights the complexity of the real estate market and the importance of understanding local trends.
Overall, the housing market in the US is experiencing a period of change, with potential opportunities for buyers in certain areas. As inventory levels continue to rise, it will be interesting to see how prices respond and whether this trend will be reflected in other cities across the country. For now, buyers in cities like Austin may have a unique opportunity to find affordable homes in a market that is experiencing a shift.
