Is Inventory Making a Comeback?

 

David Deem
714-997-3486


By Liz Dominguez


Housing inventory experienced considerable recovery for the second consecutive month in June, according to the latest Zillow Real Estate Market Report. Inventory is still low in this high-demand market, however, which is continuing to push prices upward.
 
The details:
- Inventory is now 29.2% below 2020 levels but is steadily improving.
- Home value growth is up 15% YoY—breaking annual records for the second consecutive month.
- The Zillow Home Value Index (ZHVI) reached $293,349 in June (up $38,341 from last year)
- Monthly growth accelerated in 48 of the top 50 metros, holding firm in Pittsburgh and Memphis.
 
The takeaway:
 
While inventory is still much lower than needed, these slow increases are giving buyers a little more breathing room, taking some pressure off a market that was consistently seeing above-average market performance for the summer months.
 
"Another month of rising housing inventory gives buyers some additional options and a little more bargaining power," said Jeff Tucker, senior economist at Zillow. "While the level of inventory remains incredibly low by historic norms, it is now on a trajectory that should give buyers reason to hope for a cooldown in price growth this winter, consistent with normal seasonal trends." 

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