Listings for new homes fell 1.1% in April, the first year-over-year drop since August 2014, according to the real estate brokerage Redfin.
Redfin said that nearly two-thirds of the markets it tracks had fewer listings during the month than in April of 2015. The steepest declines were in the Northeast, as listings in Boston, New York and Philadelphia fell more than 10%.
"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 said in a news release Thursday. "This triggers a domino effect down the supply chain that leads to lower sales in tight markets."
Inventory in the West remains near historic lows. Consequently, home sales and number of days on market have fallen while bidding has increased.
In Portland, Ore., and Seattle, half of all new listings sold in eight days or less, faster than anywhere else in the country. Bidding wars were prevalent in those two cities: In Seattle a record 77.9% of offers written by Redfin faced competition, while in Portland the bidding-war rate reached 68.5%.
Nationwide, home sales rose 2.5% in April, while inventory fell year over year for the seventh month in a row, by 3.2%. Home prices rose 4.8%.
Providence, R.I., had the highest price growth, as the median sale price rose 17.6% to $226,000. The highest sales growth was in Memphis, Tenn. (32.6%), and Nashville, Tenn. (31.1%).