With little incentive for homeowners with sub-3% mortgage rates to sell, 50 of the 100 largest U.S. housing markets are expected to see inventory declines, according to the Knock Buyer-Seller Market Index released today. The index this month ranks the markets with the largest expected inventory gains in 2023.
In the three markets where inventory is expected to grow the most — Salt Lake City, Dallas and Denver — inventory declined by 20%, 34% and 20%, respectively, between December 2019 and December 2022, compared to 42% elsewhere.Although the low housing inventory has led to record-high home prices over the past several years, this year’s inventory growth won't necessarily translate into home price declines.
The housing market has shifted dramatically over the past 12 months, when none of the markets tracked favored buyers. Looking ahead, by December 2023, 34 markets are forecast to be buyers' markets, 34 markets will remain sellers’ markets, and 32 will be neutral. from the start of the pandemic and no real incentive for sellers to move, finding a home you both like and can afford will remain a challenge.”