If you plan to start looking for a house soon in a major metropolitan area, new research suggests where you search can make a big difference. A recent study by Realtor.com looked at factors such as the amount of homes for sale and overall demand to determine which metropolitan areas might yield more options for future homebuyers.
Danielle Hale, the site's chief economist, told Yahoo Finance the "number of homes that are for sale is growing even faster than the national average" in these areas. In May 2019, Zillow reported that while April new home sales declined by 6.9% compared to the previous month, that figure is still 7% higher than April 2018. The report concluded that even with this trend, "strong builder confidence" indicates "the supply of new homes is poised for growth."
An April 2019 Trulia report also found that a few big metropolitan areas could be working in homebuyers' favor, stating: "On average, in ZIP codes where home values are highest, more homes are being sold further below their asking prices and selling more slowly than they would otherwise."
Realtor.com found that in these top areas, the amount of time that inventory lasts, compared to buyer demand if no new inventory was added (also known as months supply data), has increased since 2018. Currently, that means that there will be "less than one home sale per month, for every five homes listed," according to the site's press release.
Here are the top 10 metropolitan areas that could give homebuyers a little more leeway, according to Realtor's research:
- San Antonio
- Inland Empire
- Los Angeles
Although this doesn't necessarily mean that finding a home in these areas will prove any easier than recent years.
"Even though the trend is shifting in favor of buyers, we're still not seeing prices decline ... you have a few more options as a buyer, but you're not necessarily going to score a deal," Hale told Yahoo Finance. Trulia's research also emphasized "most metro areas remain tilted heavily in sellers' favor."
But we'll definitely be keeping an eye on this trend. Check out the full Realtor.com study here.