Active inventory increased to 794,286, leaving year-over-year growth near 0.89% and close to turning negative. Pending home sales remained higher than last year, with 79,370 compared with 72,312, even as mortgage rates stayed elevated. Housing demand largely held up through 2026, supported by periods when mortgage rates fell below 6.64% and moved toward 6%. Inventory being near negative year-over-year is linked to strong inventory growth earlier in the prior year alongside higher mortgage rates, and to improved demand when rates declined. Inventory growth is running at 0.89%, and conditions are healthier than 2020 to 2023, with home-price growth in check and wages rising faster than home prices.
"Active inventory increased to 794,286, putting year over year growth near 0.89% and close to turning negative. Pending home sales stayed higher than last year at 79,370 vs 72,312 despite higher mortgage rates. Housing inventory going negative year over year in 2026? Who had that in their bingo card? Even with mortgage rates up as much as 0.76% from the year's lows at one point, housing demand, for the most part, has held up well in 2026."
"Housing inventory being on the verge of going negative year over year is really about two things: First, the inventory growth in the first part of last year was really good, but it came with higher mortgage rates. Secondly, when mortgage rates fell below 6.64% and headed toward 6%, demand improved, and we are at levels where year-over-year comps are very hard to show growth. This will change after June of this year. Inventory growth is running at 0.89%."
"Last week, our weekly pending home sales data showed positive week-to-week and year-over-year growth, while housing inventory only grew 0.89% year over year. Let's take a look at the weekend tracker and note that the Memorial Day weekend will impact the tracker data next weekend. Even if we go negative year over year soon, we are in a much healthier spot with inventory than we were from 2020 to 2023. Home-price growth is in check, and we will have another year in which wages rise faster than home prices."
"Weekly inventory change: (May 16-May 22): Inventory rose from 777,913 to 794,286. Same week last year: (May 17 -May 23): Inventory rose from 767,250 to 787,287. New listings data grew week-to-week and year-over-y"
Read at www.housingwire.com
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