Nationwide, listings for new homes fell 1.1% in April, the first year-over-year drop since August 2014.
According to a report last week from real estate brokerage firm Redfin, two-thirds of larger metropolitan markets had fewer new listings last month than in April 2015. The Northeast suffered the largest drop in new listings, with some metropolitan areas seeing declines over 10%.
The stagnation in new listings may be attributed to potential sellers waiting to find the right home to buy before selling their current residence.
"A slowdown in new listings reflects a lack of confidence on the part of the homeowner that they can find a desirable home to purchase," Redfin chief economist Nela Richardson explains. "This triggers a domino effect down the supply chain that leads to lower sales in tight markets."
In Pennsylvania, Philadelphia saw a 13.2% drop in new listings year-over-year while Pittsburgh suffered a 2.7% drop.
The latest housing updates are not all negative. The figures also indicate continued growth in several areas of the market. Home sales were up 2.5% in April, while home prices rose 4.8%. However, these figures are likely a result of increased competition among buyers for fewer homes on the market.
Pennsylvania’s metropolitan areas saw sizeable increases in sale prices for April. Philadelphia saw sale prices increase 4.7% year-over-year, while Pittsburgh edged out a 5.7% increase.
Source: Read Redfin’s April 2016 report here.
For more reading on what factors are causing a shortage of new listings, read HousingWire’s report here.
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