One of the most encouraging trends in today’s housing market is the noticeable increase in the number of homes available for sale compared to the beginning of the year.
According to recent data from Realtor.com, there are 36.6% more homes on the market nationally than at the same time last year. This significant rise in inventory offers you more choices if you’re looking to buy a home now compared to a year ago. With more homes available, buyers are also gaining a bit more negotiation power. If you’ve been thinking about buying a home in recent years but were discouraged by the limited inventory, this is great news.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes:
"Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."
However, it’s important to keep in mind that while inventory has increased, it hasn’t led to an oversupply of homes on the market. The current supply is still far from reaching the levels that would cause home prices to drop significantly. In fact, compared to pre-pandemic numbers (2017–2019), there are still about 29% fewer homes for sale today (see graph below).
So, although we’re up by nearly 37% year-over-year, we’re still not back to the inventory levels of a typical market.
As Bill McBride, Housing Analyst for Calculated Risk, explains:
". . . currently, inventory is increasing year-over-year but is still well below pre-pandemic levels."
This gradual recovery is expected, and as a country, it will take time to return to normal inventory levels. The good news for buyers is that in some regions, the market is closer to that reality.
Here’s a look at how inventory growth varies by region (see graph below):
Real estate is always hyper-local. To get a clearer picture of what’s happening in your area, connect with a local agent. They can provide insights into the local inventory and how it compares to national trends. You might discover that you have even more opportunities to find the right home in your area.
The supply of homes is steadily improving across the country, giving buyers more options in their home search. This increases your chances of finding a home that suits your needs.
So, what are you looking for in a home, and what’s your budget? Reach out to a local agent to explore your options and find the best fit for you.
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