There are more home buyers looking for an affordable home than there are affordable homes to buy. That’s been true for awhile now. It’s part of the reason home prices keep rising. But while inventory is still down significantly from last year, the number of new listings has begun to improve. And, according to new numbers from the National Association of Realtors’ consumer website, the number of available smaller homes is now climbing faster than other categories. In fact, the share of homes between 750 and 1,750 square feet rose from 30.2 percent in July 2020 to 36.3 percent in July 2021. By comparison, the share of homes between 3,000 and 6,000 square feet has fallen 4.1 percent during the same period. Overall, new listings are up 6.5 percent over last year. Danielle Hale, the website’s chief economist, says the trend is good for buyers. “This is shifting the housing market balance in a more buyer-friendly direction, but buyers may not see as much price moderation as suggested by the national trend because it’s partly attributed to a shift toward smaller homes for sale,” Hale said. (source)
