A market shift that will impact homebuyers well into 2020 is likely on the way, according to realtor.com’s June 2019 trend report. 

A market shift that will impact buyers well into 2020 is likely on the way, according to realtor.com’s June 2019 trend report.

Total inventory grew 2.8 percent year-over-year, according to the study, but annual gains have softened throughout the year; the number of newly listed homes dropped 2.3 percent year-over-year in June.

If this trend continues, inventory growth is set to flatten over the next three months and could start to once again decline in October.

“It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen,” Danielle Hale, chief economist for realtor.com, said in a statement. “If the trend we’re seeing continues, overall inventory could near record lows by early next year.”

Declining inventory could lead to the return of bidding wars, stronger price appreciation and quicker home sales, according to the report.

“So far there’s been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows this winter,” Hale added.

While rates are historically low, they’re still higher than they were seven years ago when they reached their lowest point, at 3.3 percent for a 30-year-fixed-rate mortgage. Rates are higher than one-third of weekly rates seen over the last seven years, which means many homeowners have mortgage rates lower than today’s levels, according to the report.

Hale says that the reason why people aren’t putting their homes on the market is difficult to pinpoint. “It’s likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place,” she added.

Consumer confidence fell 4.4 percent over the past year, signaling that potential homesellers are more worried about a possible recession or future economic growth, according to the report.

In the short term, the U.S. median listing price likely reached its high point for the year in June, at $316,000, according to realtor.com’s data. Prices usually peak in July, but the report notes that the likely high point came earlier in the year due to a mismatch of what’s available and what buyers want.

Email Patrick Kearns

How do you stay ahead in a changing market? Inman Connect Las Vegas — featuring 250+ experts from across the industry sharing insight and tactics to navigate threat and seize opportunity in tomorrow’s real estate market. Join more than 4,000 top producers, brokers and industry leaders to network and discover what’s next, July 23-26 at the Aria Resort. Hurry! Tickets are going fast, register today!

Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.


Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription