Since 2007, the inventory of existing homes sales has generally declined while median prices have skyrocketed.
And home price growth has been exceeding wage (earnings) growth by around 2x-3x.
But suddenly, 50 metro areas have seen a surge of 13% YoY or greater. Red-hot housing markets Santa Rosa CA, Denver CO, Vallejo CA and San Jose CA have all seen 69% YoY or more growth in active listings. The fifth largest growth in active listings is … Columbus Ohio?
Maybe it was LeBron James fleeing Ohio for Los Angeles and the Lakers (a puzzling name since they are hardly any lakes in LA).
So, at last, supply is surging. Will demand meet the new supply? If not, we could see home prices declining.
Check out the data Realtors here.