Is this change in home inventory just the first step toward a market downturn?
Increase in inventory is a good thing
All through this booming market, we have discussed the key elements that were causing prices to rise so quickly. Low inventory has been at the heart of those discussions and any move toward increasing inventory should bring more balance.
The national numbers are nothing compared to our local home inventory numbers!
Dramatic home inventory increases in Santa Clara County for May 2022.
Santa Clara County real estate numbers more than DOUBLED the home inventory increase that has been reported nationally.
Home price increases have slowed as well.
We are still seeing homes selling for over asking, but not as robustly as before. This change feels like the beginning of a shift that is also happening when the market is supposed to be reaching its peak for sellers.
Homes appear to be staying on the market.
What is interesting is that the number of new listings in May for Santa Clara County was on par with the national number. So that indicates that this increase is mostly homes listed in previous months that are still on the market. With home inventory now staying on the market longer, that can spell more opportunities for buyers.
I also promised you a look at the actual numbers from the MLS for Santa Clara county. Here they are for your review: