Significant Potential

Americans who’ve struggled to find an affordable starter home may soon get a break, according to a Realtor.com survey that found that many owners wary of listing during the pandemic are getting ready to do so now. The real-estate listings website expects about 10% of the nation’s homes to hit the market this year, up from 8% in a typical year. The survey also found that 58% of the houses that owners plan to sell this year are valued below $350,000.

“The fact that we’re seeing such a significant potential in entry level and affordable inventory getting ready to come to market is to me a really encouraging sign,” said George Ratiu, senior economist at Realtor.com. Soaring demand and a limited number of properties available has triggered bidding wars in certain parts of the U.S. in recent months, even for run-of-the-mill houses. Data from Zillow Group Inc., the online real-estate company, also suggests that constraints in inventories are set to ease. Zillow saw a 30% rise in new inventory from late February to late March, a sign that the industry is returning to the traditional pattern of home listings in the spring.

Source: Bloomberg