Is the Housing Market Offering More Choices Where You Are?

One of the most encouraging trends in today’s real estate market is the increase in the number of homes available for sale.

Recent insights from Realtor.com reveal that, nationwide, the number of homes listed for sale has surged by 36.6% compared to this time last year. This is a significant boost, providing you with far more choices than you would have had just a year ago. With this rise in inventory, buyers are also regaining some negotiating power. If you’ve been hesitant to enter the market due to the tight inventory in recent years, this development should be a welcome change.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it this way:

“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 even with this improvement, the market hasn’t flipped to an oversupply of homes. We’re still far from having enough homes for sale to drive prices down significantly. When comparing today’s inventory to the more typical pre-pandemic levels (2017–2019), there are still about 29% fewer homes available (see graph below).

So, while we’re seeing a nearly 37% year-over-year increase, we haven’t fully returned to the inventory levels of a normal market.

Bill McBride, a Housing Analyst for Calculated Risk, notes:

“ . . . currently, inventory is increasing year-over-year but is still well below pre-pandemic levels.”

This situation is expected as it will take time for the market to fully recover to typical inventory levels. The silver lining for buyers is that in some regions, inventory is getting closer to what we’d expect in a balanced market.

Here’s a snapshot of how inventory growth is unfolding across different regions (see graph below):

Real estate markets are highly localized, so to get a clear picture of what’s happening in your area, it’s best to consult a local real estate agent. They can provide insights into the inventory trends where you live and how they compare to national patterns. You might discover even more opportunities to find the right home in your area.

Bottom Line
The national housing supply is on the rise, offering buyers more options. This could be your chance to find a home that fits your needs.

What are you looking for in a home? And what’s your budget? Let’s explore the options together to find the best fit for you.