Home price growth drops to single digits, while inventory soars in select metros

For the first time in more than 12 months, median home sales price growth has fallen into the single digits, growing 8.9% on a year-over-year basis as of March 31, according to a new report issued by ZipRealty. The year-over-year increase observed for March 2014 was three percentage points lower than the 11.7% gain seen in February 2014.

Among the metros surveyed by ZipRealty, median home price growth leaders on a YOY basis at the end of the first quarter were:

  • Sacramento – 21% increase
  • Las Vegas – 21% increase
  • The SF Bay Area – 16% increase
  • Chicago – 15% increase
  • Los Angeles – 15% increase
  • Nashville –13% increase

“While overall housing inventory in the metros analyzed by ZipRealty was one percent lower at March 31, 2014 than at the same point in 2013, several markets have begun to show surprisingly large and encouraging increases in inventory. An increase in for sale homes should be good news for the many interested home buyers whose plans have been impeded by inventory shortages over the past few months,” said ZipRealty CEO Lanny Baker. 

According to the new report, the metros with the biggest increases in for sale housing inventory as of March 31 include:

  • Phoenix – 49% increase
  • Sacramento – 46% increase
  • San Diego – 38% increase
  • Las Vegas – 34% increase
  • Orange County – 25% increase

The amount of time homes are spending on the market has remained stable over the past month. The fastest-moving markets as of March 31 were Austin, Boston, Houston, Dallas and Long Island. Meanwhile, the slowest-moving housing markets during that same time period based on days on market included Las Vegas, Sacramento, Orange County and Denver.