The supply of homes for sale on the market, which have been chronically low in recent years, may have finally reversed course according to a new report. Real estate company Trulia reported last week that home inventory jumped during the second quarter of 2018.
The inventory jump was the largest quarterly increase in three years according to some reports, with San Diego topping the list of major metropolitan markets.
"San Diego posted the largest inventory growth – 22 percent year-over-year," according to Alexandra Lee, an analyst for Trulia. "Compare that with the same quarter last year, when [San Diego] registered a 28 percent inventory decrease."
An imbalance of supply and demand in the housing market has driven prices higher. Increasing inventory may slow the pace of price increases, aiding buyers.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.