Inventory levels rebounded last month, finally showing signs of recovery following a year of historical declines.
May saw a 3.9% month-over-month gain in listings, the first increase since July 220 and the fifth increase in the past two years, according to Zillow’s latest market report. Only six of the country’s top-50 largest markets saw inventory fall from April and new inventory has trended up since mid-March, the report found.
Chicago home inventory increased 7.5% since April and stayed on the market for an average of six days.
Despite the increase in inventory, homes went under contract at a brisk pace last month — just six days nationally, one day shorter than in April. Listings in Cincinnati and Columbus, Ohio, and Kansas City, Mo. had the shortest time on the market – just three days.
“Despite extremely strong demand for homes in this red-hot market, a steady increase in new listings appears to have finally started turning the tides, bringing a long-anticipated turn toward more choices for buyers,” Zillow economist Treh Manhertz said in a press release. “Builders are rushing to churn out new homes, while widespread vaccinations and improved confidence in the economy should help current owners feel more comfortable listing their homes for sale.”