In today's housing market, sellers are benefiting from a significant advantage: the limited availability of homes for sale compared to the high demand from buyers. To fully grasp the scarcity of housing inventory, let's examine the latest information on active listings and how it compares to more typical market conditions.
A recent report from Realtor.com reveals that, on average, active inventory in June was 50.6% lower than the levels seen in the pre-pandemic years of 2017-2019. This statistic clearly highlights the persisting shortage of available homes, which is further illustrated in the graph below, displaying historical data that showcases the lag in inventory numbers compared to a more standard market:
It's important to note that the graph excludes data from 2020-2022 since those years were extraordinary for the housing market. By omitting those abnormal years, a fair comparison can be made without distorting the data.
By comparing the orange bars representing 2023 with the housing market's last normal years (2017-2019), it becomes evident that the count of active listings remains significantly below the usual levels.
What Does This Mean for Homeowners?
If you're contemplating selling your house, the limited inventory presents a fantastic opportunity. With fewer options available to buyers than in previous years, several key housing market statistics continue to be affected. The latest Confidence Index from the National Association of Realtors (NAR) provides some encouraging data for sellers:
- The percentage of homes that sold in less than a month slightly increased to 74%.
- The median days on the market decreased to 18 days, indicating that properly priced homes are still selling quickly.
- The average number of offers on recently sold homes rose to 3.3 offers.
When housing supply is scarce, your house takes center stage. This explains why sellers are experiencing faster sales and receiving more offers at present. If you have been contemplating selling your property, now is an opportune time to take action.
Connect with a reputable real estate professional to initiate the process and make the most of this favorable market.