The Number of Homes for Sale Is Now the Highest Since 2019—Including in Pandemic ‘Boomtowns’

The pandemic sent the real estate market into overdrive before higher mortgage rates caused a virtual standstill. But now, the number of homes for sale is the highest since 2019, including in pandemic “boomtowns.”

The total number of homes for sale in October was 29.2% higher than the year before, marking the 12th consecutive month of growth.

“Sellers continued to increase their activity this October. Total active listings increased to highs not seen since before the pandemic,” says Realtor.com® senior economist Ralph McLaughlin in a new monthly housing report. “We noted last month that the sharp decrease in mortgage rates in mid-August could lead to an increase in listings in the coming months as lower rates begin to entice the marginal homeowner to sell.”

Pandemic “boomtowns” lead surge in homes for sale

In a bit of welcome news for buyers across the country, active home listings are up in all four regions of the U.S.

Leading the charge is the South, with a whopping 34.0% increase, closely followed by the West at 33.6%, the Midwest at 19.8%, and the Northeast, which still saw a healthy uptick of 14.3%.

The Southern boomtowns that rose to prominence during the pandemic are once again making waves—with welcome surges in housing stock. Austin, TX, tops the list with a 40.1% jump in inventory, trailed by Memphis, TN, (+39.2%); and Orlando, FL, (+26.6%). These metro areas now boast listings that have surpassed pre-pandemic levels—a notable shift.

Metros that saw the largest increases in the number of homes for sale included San Diego, CA, at 63.5%; Seattle, WA, at 60.5%; and Denver, CO, at 59.5%.

Fresh listings flourish

The uptick in housing stock is not due to old, stale listings piling up—newly listed homes surged 4.9% above last year’s levels, reflecting a solid spike in seller activity.

Home shoppers in search of fresh listings will have the most luck in the West, where there are 7.0% more newly listed homes than in October 2023. New listings also grew by 5.1% in the Midwest, 3.2% in the Northeast, and 2.9% in the South.

The metros that saw the largest increase in fresh listings compared with last year included Baltimore, MD, at 24.9%; Washington, D.C., at 19.4%; and Seattle at 17.5%

And those figures could climb even higher before year’s end.

“November and December are usually some of the colder months in the housing market, but it’s possible we’ll also see an increase in listing activity in these months after the uncertainty of the presidential election subsides,” says McLaughlin.

Home prices remain high

Home shoppers may have more homes to choose from, yet home prices didn’t budge and instead held steady at $424,950—exactly where prices were last October.

“However, when a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year,” says McLaughlin.

In another blow to budget-minded buyers, even though the median home price remained stable, the median price per square foot continued to rise, increasing 2.1% in October compared with the year prior.

Meanwhile, the price per square foot grew by an astonishing 50.5% on average since October 2019.

In the 50 largest metros, the markets that experienced the biggest increase in price per square foot over the past five years include the New York metro area, up 72.3%; Hartford, CT, up 63.2%; and Boston, MA, up 60.8%.

There is a break in the affordability headwinds, however. Sellers slashed prices on 18.6% of listings in October, the same percentage as the year prior.

Homes are taking longer to sell

Another upside of rising housing stock is that buyers can take their time making an offer. As a result, the typical home spent 58 days on the market in October, eight days longer than the same time last year.

“This marks the slowest October since 2019, marking the seventh month in a row in which homes spent more time on the market compared with the previous year,” says McLaughlin.

Yet buyers who’ve been on the fence about entering the market may not want to take too long on their home-shopping journey, as the competition is poised to increase.

“Since most sellers also become buyers, an increase in new listings also means that there’s an increase in buyers,” notes McLaughlin. “We now expect homebuying activity to begin to tick higher on a year-over-basis through November and December, both because of falling rates as well as a low 2023 benchmark.”

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