If you're considering a move, understanding the current state of the housing market is crucial. Here's an update on the existing inventory of homes for sale, something that holds significance for both buyers and sellers.
Typically, the housing market follows seasonal patterns. Spring marks the peak homebuying season, characterized by a surge in new listings. However, in the latter half of the year, the number of new listings usually decreases as the sales pace slows down.
The graph below, using data from Realtor.com, illustrates this seasonality. It shows a departure from the usual trend this year (indicated by the black line):
From 2017 to 2019 (represented by the blue and gray lines), the housing market followed a standard pattern, reflecting typical seasonal trends.
In 2020 (the orange line), the data deviated significantly from the norm due to the pandemic's onset. Sellers postponed their plans to move, resulting in a substantial drop in new listings. In 2021 (the green line) and 2022 (the red line), the trend was closer to normal but still displayed some abnormalities.
This year (the black line) stands out distinctly. Instead of the usual sharp decline in new listings for this time of year, the number has stabilized. Compared to the same period last year, there are even more new listings entering the market.
What Does This Mean for You?
For buyers, the stabilization of new listings is a positive indicator. It signifies a consistent flow of options in the market, providing a wider array of homes to explore, catering to your preferences and needs.
For sellers, although new listings are breaking from seasonal norms, inventory remains below pre-pandemic levels. The black line on the graph indicates that inventory remains lower than usual, suggesting that prices are not heading towards a significant downturn. With relatively less competition compared to a typical year, your house stands a better chance of attracting motivated buyers' attention.
Whether you're in the market to buy or sell, the present moment might present an opportune time to make your move. If you seek insights or guidance regarding the availability of homes in your local area, connecting with a real estate agent can provide valuable assistance.