When assessing home price momentum, it’s important to monitor active listings and months of supply, Fast Company reports.
If active listings sharply increase while homes stay on the market for longer periods, it may indicate potential future pricing weakness. Conversely, a sharp drop in active listings could suggest a market that is heating up.
National active listings are on the rise—up 24.6% year over year in January. The growth indicates that homebuyers are gaining some leverage in many parts of the country, with some markets even feeling like balanced or buyers’ markets on the ground.
However, nationally, we’re still below prepandemic active inventory levels (25.3% below January 2019), and some resale markets still remain tight.