After growing by 22 percent last year, inventory is “a bright spot for a market that’s been dealing with deep deficits in recent years,” according to ICE Mortgage Monitor report for February.

Turn up the volume on your real estate success at Inman On Tour: Nashville! Connect with industry trailblazers and top-tier speakers to gain powerful insights, cutting-edge strategies, and invaluable connections. Elevate your business and achieve your boldest goals — all with Music City magic. Register now.

For-sale inventory bounced back in 2024 to the strongest level in nearly five years, with 25 percent of markets back at pre-pandemic levels and another 15 percent on track to normalize this year, according to an analysis by technology and data provider Intercontinental Exchange (ICE).

“Overall, for-sale inventory enters the year as a bright spot for a market that’s been dealing with deep deficits in recent years,” ICE said in releasing the company’s Mortgage Monitor report for February. “Inventory levels grew by 22 percent in 2024, with a quarter of markets, largely in the southern U.S. now back to or above pre-pandemic levels.”

At the current rate of growth, the nation as a whole market is on track to return to pre-pandemic for-sale inventory levels by mid-2026, “although a number of macro and micro economic factors could change that trajectory,” the report warned.

Pace of inventory normalization, by market

Source: ICE Mortgage Monitor report, February 2025.

The Midwest and Northeast “are noticeable outliers, with much deeper deficits remaining and slower rates of improvement, as most markets in those regions are not on pace to ‘normalize’ until 2027 or beyond,” the report said.

Home price appreciation also slowed to 3.4 percent last year — the slowest annual growth since 2011, when housing markets were still reeling from the 2007-2009 Great Recession.

Andy Walden

“Given the disparity of inventories across the country it is no surprise to see 18 of the 20 strongest housing markets from a price growth perspective located in inventory-starved portions of the Midwest and Northeast,” ICE’s Andy Walden said in a statement.

Prices are even falling in some Southeastern markets, where homebuilders have helped boost supply.

Annual home price appreciation, by market

Source: ICE Mortgage Monitor report, February 2025.

Markets posting annual home price declines included Austin, Texas (-2.9 percent); Tampa, Florida (-2 percent); San Antonio, Texas (-1.5 percent) and Jacksonville, Florida (-1.1 percent).

Eight of Florida’s nine largest markets saw price declines last year, with Miami the lone exception.

“Given slower migration into the state, rising insurance costs, and growing for-sale inventories, home prices in the Sunshine State will be worth watching closely as we make our way through 2025,” the report said.

Among the 50 largest U.S. housing markets, Buffalo, New York, saw the greatest annual price appreciation (9.3 percent), followed by Hartford, Connecticut (8.5 percent); Cleveland, Ohio (7.9 percent); Detroit (7.9 percent); Chicago (6.7 percent); New York-Newark (6.6 percent); and Philadelphia (6.5 percent).

In their latest forecast, Fannie Mae economists estimated that national home prices rose 5.8 percent in 2024 and will rise another 3.5 percent in 2025 before decelerating to 1.7 percent by the end of next year.

Last year saw sales of existing homes shrink to levels not seen since 1995, and Fannie Mae forecasters project elevated rates dim the prospects of a strong 2025 sales rebound.

Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

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.
Success!
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
×