A recent report from Zillow is offering some hope for first-time homebuyers. Well, at least in a few years. The report states that experts expect a two-year climb back to pre-pandemic for-sale inventory levels. This trend is expected to be reflected in the Tampa Bay area as well.
Home inventory to increase soon
The dwindling supply of homes for sale has been a key driver of the recent explosion in U.S. home values, which have risen 32% in the past two years. Total inventory has fallen from a monthly average of 1.6 million units in 2018 and 2019 to just over 1 million in 2021. Monthly figures from 2022 appear to be even lower.
Experts polled in the latest Zillow Home Price Expectations Survey believe the share of purchases made by first-time home buyers will increase in 2024. Specifically, inventory should return to a monthly average of 1.5 million units or higher in 2024. Some people poled are even more optimistic, believing that supply will bounce back to pre-pandemic levels in 2023.
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“Inventory and mortgage rates will determine how far and how fast home prices will rise this year and beyond,” said Zillow senior economist Jeff Tucker. “We are seeing new listings returning to the market, slowly, as we enter the hottest selling season of the year, but this supply deficit is going to take a long time to fill.”
