April marked the third month where price growth trended below the 12-month average of 5.6%, according to the Redfin Housing Market Tracker, as the median sale price increased just 4.8% last month year-over-year.
Homes sales increased 2.5% year-over-year, but inventory dropped 3.2% year-over-year and, for the first time since August 2014, there was a 1.1% year-over-year decline in new listings.
The retreat in listings growth was widespread, with nearly two-thirds of Redfin markets seeing fewer new listings than the same time last year. The largest declines were concentrated in the Northeast, with Boston, New York and Philadelphia seeing year-over-year declines of more than 10%.
“Nearly all of Eastern Massachusetts is seeing bidding wars, and hot homes are scooped up two to three days after an open house. I can’t remember the last time we saw this across the board,” said Redfin agent Peter Phinney in Boston. “Competition is good for sellers in one way, but the other side of the coin is that sellers are afraid they can’t find something to move to. Moving up in the same geography is not the simple task it once was when you have to combat 10 other buyers for a desirable home. I think this situation is in large part what has caused the inventory shortage.”