Resetting the housing market: 41 markets where power is shifting to buyers

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At the height of the housing epidemic, demand for housing was so intense that homes sold so quickly that they were not registered as active inventory.

Indeed, as of July 2021, there were only 546,686 active US listings. That was a staggering 56% below the 1,239,534 active listings in July 2019. In July 2021, all 200 major housing markets were below pre-pandemic 2019 inventory levels.

But we’re slowly starting to see a decline—national active listings in July 2024 came to 884,273, down 29% from pre-pandemic 2019 active levels.

ResiClub created a new chart to track active inventory acquisition across the country.

In July 2023, only eight of the nation’s 200 largest housing markets had active listings that exceeded July 2019 levels.

As of July 2024, 41 of the nation’s 200 largest housing markets had active listings that exceeded July 2019 levels.

In general, housing markets where inventory (ie, active listings) have returned to pre-pandemic levels have experienced weak home price growth (or an outright decline) over the past 24 months. On the other hand, housing markets where inventory remains well below pre-pandemic levels have, in general, experienced strong home price growth over the past 24 months.

Here’s an interactive map showing one year of change:

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And the following interactive map shows markets that have returned—or haven’t—to pre-pandemic levels. Most areas above pre-pandemic levels are located in the gulf region.

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Back in June 2022, Fed Chairman Jerome Powell told reporters that home buyers needed to “reset.”

“I would say if you are a home buyer, someone or someone new looking to buy a home, you need to reset. We need to get back to a place where supply and demand come back together and where inflation comes down again, and mortgage rates come down again,” Powell said. And you see the housing market changing. We’re looking at what’s going to happen. How much is it going to affect residential investment? I’m not really sure. It’s going to affect How much are the houses? I’m not sure.”

While many parts of the country remained seller’s markets as prices rose, some areas may finally see some sort of “reset,” or at least some relief.

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