More small houses being listed is sign of improving housing market

Yes, inventory is still low nationwide, down 33.5% in July compared to the year prior, according to. But the decline is less than the drop in June , new listings have risen 6.5% nationwide compared to the same period last year, and the inventory coming on the market could spell some good news for buyers looking for an affordable home: Smaller homes are slowly gaining a larger share of the inventory, according to the data.

When it comes to single-family homes, the share of houses for sale between 750 and 1,750 square feet jumped to 36.3% in July 2021, up from 30.2% during the same time last year. Meanwhile, the inventory of homes between 3,000 and 6,000 square feet dropped to 20.1%, down from 24.2% in July 2020. At the same time, houses are getting more affordable. While the median home price for active listings in the US stayed the same between June and July this year — $385,000 — the median listing price increased at a slower rate in July than in the month prior, according to Realtor.com.The 7 best suburbs worth moving to right now, where people earn more money and homes are cheaper

Overall, this means a rosier outlook for homebuyers, according to Sabrina Speianu, a senior economic research analyst at Realtor.com and the report's author. "For homebuyers, this means that there may be more affordable inventory available depending on their metro-area," she wrote."For home sellers, this means that while their home values are still growing, they may need to consider pricing more competitively than they have in the past."

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