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Active inventory nationally jumped 33.5% in October from a year ago, according to Realtor.com.
That puts supply at the highest level in two years.
The slowdown in demand for homes has caused sellers to cut their prices.

A For Sale sign is posted in front of a property in Monterey Park, California on August 16, 2022.
Frederic J. Brown | AFP | Getty Images

After more than two years of a historically lean housing market, listings are starting to rise − and swiftly.
Active inventory nationally jumped 33.5% in October from the same time last year, according to Realtor.com. That puts supply at the highest level in two years.

It’s not that sellers are rushing into the market; newly listed homes dropped 16% from a year ago, and pending listings are down 30%. But supply is growing because the homes that are on the market aren’t selling as fast as they did just six months ago.
The average number of days it takes to sell a home is now 51, up by six days compared with a year ago.
“As the rapid runup in rates reshapes housing market dynamics this fall, both buyers and sellers are taking a step back to recalibrate their plans,” said Danielle Hale, chief economist at Realtor.com.
Mortgage rates have climbed so high and so fast that home shoppers are rushing to the sidelines. Already, affordability was rough with home prices up more than 40% since the start of the Covid-19 pandemic. But with rates now more than twice what they were in January, at just over 7%, potential buyers are looking at a monthly payment that is nearly $1,000 higher than it would have been at the start of the year.
Housing availability varies by city, depending on demand and affordability.

In Phoenix, inventory jumped a striking 174% in October. The city saw a mad rush of buyers over the past two years as employees who could suddenly work from anywhere moved out of pricey markets in California. Now, sales in the city are down more than 30% from a year ago, according to Redfin. 
Inventory is also up 167% in Raleigh, North Carolina, and up 145% in Nashville, Tennessee, markets that also saw an influx of buyers during the pandemic. Inventory is still down in Chicago, Milwaukee and Hartford, Connecticut, but those markets did not see the same surge in demand over the last two years.
The slowdown in demand for homes has caused sellers to cut their prices. A full 20% of listings now on Realtor.com have had a price reduction − about twice the share as a year ago.
Still, home prices are not exactly falling yet. The price gains from a year ago are, however, shrinking at the fastest pace on record, according to several surveys.
And with prices still high, more buyers appear to be widening their searches. Just over 60% of listings views on Realtor.com in the third quarter of this year came from shoppers outside of a listing’s area. That’s up from 57% in the second quarter and 52% in the same quarter of 2021.
“For buyers with the flexibility, relocating to a lower-priced market could help offset higher mortgage costs. There’s also a takeaway for sellers in these areas – on a well-priced home, you could still see strong interest from these out-of-towners,” added Hale.

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The new lounge targets customers who are connecting or want to grab food on the go.
Two-thirds of United’s customers in Denver are passing through in between connecting flights.
Seating is limited: 16 seats and standing room for eight people at a bar.

United’s new, small-format lounge at Denver International Airport.
Source: United Airlines

United Airlines is opening a new kind of lounge at Denver International Airport, and it’s not designed for travelers to linger.
The Chicago-based airline is launching the new club Saturday as travel demand recovers, and airlines return to profitability in part thanks to customers are willing to pay up for trips, like those with access to airport lounges.

The roughly 1,600-square-foot lounge, called United Club Fly, is a “grab-and-go” facility with complimentary food options like sandwiches, wraps and salads as well as smaller items like Noosa yogurt cups and treats like Milk Bar Birthday Cake Truffles.
A barista will offer made-to-order coffee drinks like cappuccinos, but there is also a self-serve coffee machine and a water bottle refilling station.
Seating is limited: 16 seats and standing room for eight people at a bar. Travelers scan their boarding pass to enter and can’t bring guests, like they can at standard United Clubs.

United’s new, small-format lounge at Denver International Airport.
Source: United Airlines

Access to United Clubs comes with any international business class or transcontinental ticket, or with a membership, which costs $650 a year for most members of its frequent flyer program, according to the airline’s website. It’s $550 to $600 for members with higher-tier status. Some credit cards also offer access.
The new, smaller club in Denver is for “those who are time constrained or simply looking for good food and drink all the while preserving space in our facilities for those who have a little more time,” said Alexander Dorow, United’s head of lounges and premium services.

About two-third’s of United’s customers in Denver, one of the busiest airports during the Covid pandemic, are passing through in between connecting flights, Dorow said.
It’s a new concept for a U.S. airline. “It’s not a one-size-fits-all mentality by any means,” Dorow said of the carrier’s approach to its lounges.
Carriers are ramping up their fight for consumers willing to shell out more for travel, and trying to make their lucrative co-brand credit cards more appealing.
“It’s a very smart move by United because airlines try to minimize the connecting time between flights for passengers,” said Henry Harteveldt, founder of travel consulting firm Atmosphere Research Group. “I wouldn’t be surprised once United launches this that we see other airlines looking do to something similar.”

United’s new, small-format lounge at Denver International Airport.
Source: United Airlines

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Shonda Rhimes, the high-powered producer behind “Bridgerton,” is among creators who have told Netflix they feel midroll advertising disrupts their storytelling, sources say.
Intrepid Pictures, which makes films and series such as “The Haunting of Hill House,” has also expressed displeasure with the concept, sources say.
Netflix has told creators it doesn’t plan to share advertising revenue with them, sources say.
The company launched its ad-supported tier this week in the United States and other countries.

Shonda Rhimes attends 2018 Vanity Fair Oscar Party on March 4, 2018 in Beverly Hills, CA. 
Presley Ann | Patrick McMullan | Getty Images

Shonda Rhimes, the high-powered producer behind “Bridgerton” and “Inventing Anna,” is among a number of showrunners, creators and writers who have expressed displeasure with Netflix’s decision to include mid-video ads in their content, according to people familiar with the matter.
Rhimes and Intrepid Pictures’ Trevor Macy and Mike Flanagan are among a group of creators who have told Netflix executives they believe the ads interrupt their storytelling, said the people, who asked not to be named because the discussions are private. Netflix has told creators it won’t be sharing any revenue from advertising with them, the people said.

Netflix isn’t the first streamer to have an ad-supported tier. But it has used its previous aversion to commercials as a marketing tool to help land deals with creators. Rhimes signed a multiyear deal with Netflix in 2021 to exclusively make content for the streaming service. When she inked the deal, Netflix had a firm policy not to include advertising in its programming, a longtime tenet of co-founder and co-CEO Reed Hastings. Both Rhimes and Netflix declined to comment.
Netflix released a lower-priced advertising-supported service in the U.S. and other countries this week. Netflix made the decision to offer an ad-supported tier as revenue and subscriber growth have plateaued coinciding with the end of the global coronavirus pandemic. Netflix has about 223 million global subscribers.
Netflix executives have told creators they have thoughtfully placed midroll advertising at intervals that make sense with each episode’s storyline, according to people familiar with the matter. They’ve also told creators they don’t expect that many people to sign up for the basic advertising tier relative to subscribers who will pay for no commercials, the people said.
“We’re using our internal content tagging teams essentially to find those natural breakpoints so that we can deliver the ad in the least obtrusive point,” Netflix operating chief Greg Peters said in October.
Still, several creators haven’t been pleased with the explanations. Intrepid Pictures makes horror films and series for Netflix. Those are particularly bad fits for ad insertions because they kill building tension. One 50-minute episode of Intrepid’s “The Haunting of Hill House” is comprised of five long, single-shot takes.

That episode, the series’ sixth (“Two Storms”), is now interrupted by three one-minute long commercial breaks, made up of three ads each, in the $6.99 tier. One the main reasons Intrepid signed an exclusive overall deal with Netflix in 2019 was the streamer’s total avoidance of advertising, according to people familiar with the company’s thinking. A spokesperson for Intrepid declined to comment.

No revenue share

Not all creators are upset with Netflix. Ryan Murphy, who signed a $300 million with Netflix in 2018, crafts his series’ episodes in three acts, leading to easy ad placement, according to a person familiar his work. Scott Frank, co-creator of “The Queen’s Gambit,” has also not complained, according to a person familiar with his thinking.
The Directors Guild of America and the Writers Guild of America declined to comment for this story.
Splitting revenue from advertising, especially commercials that interrupt the storytelling flow, could be a way to mollify irritated creators who feel Netflix has changed the rules midgame. But Netflix won’t be doing that, according to people familiar with the matter. Netflix owns its original programming and can insert ads where and when it wants, giving creators little leverage other than voicing complaints.
Still, other media and entertainment companies have avoided the issue of interruptive ads or agreed to share revenue in some cases. Warner Bros. Discovery’s HBO Max decided not to include midroll advertising in HBO programming to skirt the issue of interrupting prestige programming. When HBO has sold shows to linear cable networks in syndication, such as when “The Sopranos” aired on A&E, creators have been able to participate in revenue sharing, according to a person familiar with the matter. An HBO spokesperson declined to comment.
Some creators that have made content exclusively for Disney+ also have rights to participate in advertising revenue sharing, depending on contractual language, according to a person familiar with Disney’s policies. But unlike Netflix, Disney owns linear cable networks that could eventually air Disney+ programming with commercials. A Disney spokesperson declined to comment.
–CNBC’s Sarah Whitten contributed to this article.
WATCH: Netflix launches ad-based subscription plan

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Hospitalization rates for the flu are at their highest level since 2010, according to the CDC.
Seniors and children younger than age 5 are most at risk right now, public health official said.
Cases of respiratory syncytial virus, or RSV, is also increasing in almost every region of the U.S.
Dr. Anthony Fauci warned hospitals could face a “negative trifecta” from emerging Covid variants, flu and RSV.

A nurse administers a flu vaccination shot to a woman at a free clinic held at a local library on October 14, 2020 in Lakewood, California.
Mario Tama | Getty Images

The U.S. is facing the highest flu hospitalization rates in more than a decade with children and the elderly most at risk, according to the Centers for Disease Control and Prevention.
Flu and respiratory syncytial virus had receded during the Covid-19 pandemic due to mitigation measures such as masks and social distancing. But as people start to return to their normal routines and socialize without masks, the viruses are staging a major comeback.

At least 1.6 million people have fallen ill with the flu so far this season, 13,000 people have been hospitalized, and 730 have died, according to CDC data.
About about 3 patients are being hospitalized with the flu out of every 100,000 people with the virus right now, which is the highest rate since 2010. The current hospitalization rate is nearly five times what was observed during the last pre-pandemic season in 2019.
Seniors and children younger than age 5 face the biggest risk right now, with hospitalization rates about double the general population, according to CDC data.
“There are also early signs of influenza causing severe illness in precisely these two groups of individuals,” Dr. Jose Romero, director of the CDC’s National Center for Immunization and Respiratory Diseases, told reporters during a briefing Friday.
In the Southeastern U.S., about 20% of respiratory samples are testing positive for a strain of flu called H3N2 that has been associated with more severe illness in children and older people in the past, Romero said. In the Mid-Atlantic and Midwest, H1N1 flu viruses are growing in circulation, he said.

Cases of respiratory syncytial virus, or RSV, are also increasing in almost every region of the U.S. right now, Romero said. In most of the South and parts of the West, however, RSV is trending downward and the flu is now surging, he said.
RSV is a common virus that most children catch before age two. It normally causes cold-like symptoms, but can also result in serious illness requiring hospitalization for infants and the elderly.
Romero said mitigation measures implemented during Covid left a large swath of the U.S. population uninfected with other common respiratory viruses, and as a consequence these viruses are now surging because young children in particular do not have immunity from prior infections.
The federal government is prepared to send medical teams and provide supplies from the strategic national stockpile if hospitals are stretched beyond capacity, according to Dawn O’Connell, a senior official at the Health and Human Services Department. No state has requested such support so far, O’Connell said.
Romero called on everyone who is eligible to get their annual flu shot and Covid booster dose. Children younger than age 8 who are receiving the flu vaccine for the first time should receive two doses for the best protection, he said. There is no vaccine that protects against RSV.
Romero also called for people to take everyday, commonsense precautions such as covering your mouth and nose when coughing or sneezing and washing your hands frequently.
It’s often difficult to the tell the difference between flu, RSV and Covid symptoms. Romero said parents should seek medical attention for their children right away if they show any of the following warning signs: Trouble breathing, blueish lips or face, chest or muscle pain, dehydration (dry mouth, crying without tears, or not urinating for hours), or not alert or interactive when awake.
White House chief medical advisor Dr. Anthony Fauci also warned this week Covid deaths are still far too high. Fauci said the U.S. stands at a crossroads as omicron subvariants emerge that are resistant to key antibody treatments that protect the most vulnerable.
Fauci warned hospitals could face a “negative trifecta” this winter from emerging Covid variants, the flu, and RSV.
“It’s going to be very confounding and might even stress the hospital system, particularly for the pediatric population,” Fauci said.

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Space company Rocket Lab called off its latest attempt at catching one of its Electron boosters with a helicopter, as the venture pursues reusability of its rockets.
The company launched the “Catch Me If You Can” mission from its private facility in New Zealand on Friday.

The primary goal of Rocket Lab’s mission, its ninth Electron launch this year, is delivering a research satellite to orbit for the Swedish National Space Agency.

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But the company had a secondary goal: Recover the booster, the largest segment of the Electron rocket, using a helicopter that would catch it mid-air as it returns to Earth above the Pacific Ocean.
This was the company’s second attempt at trying to pull off the feat during a mission, after its first in May. Rocket Lab said on its webcast that the helicopter’s pilots called off the catch.
“We do have the backup option of an ocean splashdown. We’ll bring you updates on that ocean operation in the hours to come,” Rocket Lab spokesperson Murille Baker said.

The helicopter the company uses to recover its rocket boosters.
Rocket Lab

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Travel demand has surged this year, even as Americans pay higher airline fares.
The holiday season will test consumers’ spending priorities, especially amid inflation.
Retailers are trying to lure back customers who bought a lot of stuff during the Covid pandemic.

Getty Images

Retailers have a new threat this holiday season: wanderlust.
Americans are returning to the skies, filling hotels, swarming theme parks — and they’re showing a willingness to spend more of their money on trips.

That is setting up the fiercest holiday season battle for consumers’ wallets since before the Covid pandemic, with persistent inflation already straining household budgets during retailers’ make-or-break quarter. Retailers are juggling other challenges: selling off excess inventory, trying to lure consumers who already bought a lot of stuff during the pandemic and wooing shoppers who have become more budget-conscious.
For the travel industry, it’s been a year of recovery. Delta Air Lines, Mastercard and Airbnb are among the companies enjoying windfalls. Other companies have also indicated a shift toward experiences and services. Live Nation reported double-digit attendance growth at theaters, arenas, stadiums and festivals. Starbucks said customers are springing for pricy drinks like pumpkin spice lattes.
“The trend towards spending on experiences continues,” Mastercard CEO Michael Miebach said on a quarterly earnings call late last month. “We saw notable strength in airline, lodging and restaurant spend with a shift away from categories like home furnishings and appliances.”
The pullback in spending on goods already has some retailers warning of tougher times ahead. Amazon shocked investors in late October with a weaker-than-expected forecast for the end of the year as e-commerce growth slows, and the company announced a corporate hiring freeze. Appliance giant Whirlpool cut its estimates.
Shipping giant FedEx missed expectations in its September report. CEO Raj Subramaniam said he anticipates a “worldwide recession.” U.S. retail sales were flat in September, a sign of inflation taking its toll on consumers, since the figures are not inflation-adjusted.

Walmart, Target, Home Depot, Macy’s and others will deliver their own updates to investors in mid-November. Walmart and Target over the summer disappointed investors when they detailed the financial toll of excess inventory.

Permanent vacations

Travel spending has soared, due in part to flexible office policies that are allowing Americans to travel more and book jaunts to Europe well into the traditional offseason.
As of September, airline ticket sales were up more than 56% from a year ago, and rose 10.9% versus the same month in 2019, according to Mastercard Spending Pulse, which measures in-store and online retail sales. Lodging sales shot up more than 38% from a year ago, and were up 42% versus September 2019.
“Taking the annual vacation, I think, is an entitlement for people,” Hawaiian Airlines CEO Peter Ingram said in an interview last month. “After having been deprived of that for a couple of years when there were restrictions on the ability to move around, people are really embracing it and going out.”
United Airlines CEO Scott Kirby noted that more relaxed office attendance policies are also letting people travel more.
“That’s why September, a normally off-peak month was the third strongest month in our history,” he said on the carrier’s earnings call.
The appetite for travel is persisting despite soaring airfares, which have been fueled by a pilot shortage and aircraft delivery delays. Executives last month also said many people are even willing to pay up for more spacious seats. Airfare was up 43% on the year in the latest U.S. inflation read.
“Travel remains extremely resilient,” said Anna Zhou, an economist at Bank of America Institute. Even after Labor Day, when travel normally slows down, “it’s just not the case this year, especially for international travel,” she said.
For now, airlines are brushing off worries about the possibility of a recession.
“While there’s noise regarding whether we are headed into a recession or not or whether we may even be in one now, we have not seen any noticeable impact on our booking and revenue trends,” Southwest’s CEO Bob Jordan said on an Oct. 27 earnings call.

‘Last hurrah’

Airlines and hotels aren’t seeing a slowdown in travel yet. But if a recession hits, that could jeopardize all consumer spending — and prompt even higher-income Americans to rethink big trips.
“Where we go a year from now, that’s difficult to predict,” Hawaiian Airlines’ Ingram said.
Tim Quinlan, senior economist at Wells Fargo, expects the holiday season will be the “last hurrah” for consumers. He anticipates a 2% annual gain in holiday retail sales year over year in November and December when adjusted for inflation. That compares with an estimated 8.1% last year, and a 10.4% annual gain in 2020.
The bank originally projected a recession around Labor Day. Yet unemployment has remained historically low. The U.S. added 261,000 jobs in October, ahead of estimates.
Americans have kept up their spending by cutting back on their savings rate, racking up credit card debt and drawing down savings accounts, Quinlan said. Soon, he said, they will have to start pulling back and making trade-offs.
“People are spending more than they are making and that’s sort of the definition of unsustainable,” he said. “The consumer is on borrowed time.”
Quinlan now predicts a recession will hit in April, May or June.

The consumer is on borrowed time.

Tim Quinlan
Wells Fargo senior economist

U.S. credit card balances rose $46 billion during the second quarter, a 13% jump that was the highest in two decades, according to the St. Louis Fed. Both housing and nonhousing debt are up sharply since the start of the pandemic.
Credit card delinquency rates at the end of the second quarter hit 1.81%, the highest since the first quarter of 2021, according to the St. Louis Fed. But that’s far below the historical average, and consumers are still sitting on healthy savings built up in the pandemic.
The National Retail Federation, a major trade group, on Thursday joined other industry watchers in forecasting more modest holiday sales – and saying some of that spending will be funded through credit card debt and savings accounts rather than income.
Jack Kleinhenz, the group’s chief economist, acknowledged on a call Thursday that travel is a spending priority for more consumers, too. Yet he said he sees it as a complement, not a trade-off.
“You might say, ‘Well, geez, that should take away retail sales because people will be spending more on gasoline and for travel, airline tickets,’ but at the same time, people are bringing food and presents and we expect them to be spending more on outfits.”
Travel may not be seeing a drop, since people often plan and pay for trips months in advance, said Jorge Barraza, an assistant professor of consumer psychology at the University of Southern California.
“It may be just the type of thing that people don’t perceive how much prices have gone up and they’re willing to put up with it because there’s pent-up demand to travel,” he said. 
And, he added, seeing friends or family post about their trips on social media can motivate people to book vacations, even if it means dipping into savings.
“When you have times of stress and uncertainty, we’re more likely to see that YOLO behavior happening,” he said, referring to the expression “You only live once.”

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Adidas announced Friday that it is in talks with Puma CEO Bjorn Gulden to succeed Kasper Rorsted as its chief executive.
Puma announced Arne Freundt as Gulden’s successor Friday.
The two companies were founded by brothers and rivals Adi and Rudi Dassler in Germany.

Björn Gulden, Chairman and Managing Director of the sporting goods manufacturer Puma SE, speaks at the company’s annual press conference.
Daniel Karmann | Picture Alliance | Getty Images

Adidas announced Friday that it is in talks with Bjorn Gulden, the departing CEO of Puma, to succeed Kasper Rorsted as its chief executive.
Rorsted, who has helmed Adidas since 2016, unexpectedly announced his departure in August. He plans to leave Adidas sometime during 2023, after a successor is officially appointed.

Gulden, meanwhile, is simultaneously ending his tenure at Puma. His membership on Puma’s management board expires at the end of 2022, and Puma on Thursday announced that Arne Freundt would be taking his place as Puma’s chief.
Adidas confirmed the talks with Gulden as a potential successor, but declined to comment beyond that release. Puma declined to comment.
Adidas has faced a recent public relations crisis in its dealings with Ye, formerly known as Kanye West. The company terminated its partnership with Ye’s Yeezy brand after a series of antisemitic remarks from the rapper.
Adidas and Puma have roots in 20th century Germany. They were founded by brothers Adi and Rudi Dassler, who went into business together in 1919. They became rivals and broke off after World War II to start Adidas and Puma, respectively.

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Combs is acquiring the cannabis operations from Cresco Labs Inc. and Columbia Care Inc., which are divesting the assets as part of their merger.
The operations are in New York, Massachusetts and Illinois.
The deal will create the country’s first minority-owned, vertically integrated multi-state cannabis company, according to a release.

Sean ‘Diddy’ Combs accepts the Lifetime Achievement Award onstage during the 2022 BET Awards at Microsoft Theater on June 26, 2022 in Los Angeles, California.
Kevin Winter | Getty Images Entertainment | Getty Images

Hip-hop mogul and businessman Sean “Diddy” Combs is venturing into the world of cannabis.
Combs has agreed to acquire licensed cannabis operations in New York, Massachusetts and Illinois from Cresco Labs Inc. and Columbia Care Inc., in a deal worth up to $185 million. The transaction marks Combs’ first investment in cannabis and will create the country’s first minority-owned, vertically integrated multi-state cannabis company, as well as the world’s largest Black-owned cannabis company, according to a release from Combs and the companies.

The transaction comes after Cresco Labs earlier this year agreed to purchase rival Columbia Care in a $2 billion deal that would make Cresco the top U.S. cannabis producer. It was one of the biggest deals in the cannabis industry, and required Cresco to divest assets in limited-license markets such as New York.
The deal includes four retail stores and one production facility in New York state; three retail stores and one production facility in Massachusetts; and two retail stores and one production facility in Illinois. 
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” Combs in a Friday press release.
The assets give Combs the ability to manufacture branded cannabis products and distribute the products to dispensaries in major metropolitan areas like New York City, Boston and Chicago. Combs will also be able to operate retail stores in the three states.
“Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion,” Combs added.

“For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future,” said Charles Bachtell, CEO of Cresco Labs.
Bachtell added that the industry is in need of “greater diversity of leadership and perspective,” and that the deal with Combs is “incredibly exciting.”
The deal adds to Comb’s growing portfolio of businesses venture that includes music, fashion, media and spirits.

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