More Homes, Slower Price Growth: What Buyers Need to Know

The current real estate market has a surprising twist – there are more homes for sale now than in previous years, and this shift could be a game-changer for prospective buyers. Here’s why this matters and what it could mean for your home search.

More Choices Than Before

One of the biggest perks of today’s market is the variety available. According to Realtor.com:

“There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”

While the number of homes on the market hasn't fully returned to pre-pandemic levels, this rise in inventory is a step in the right direction. With a larger selection, you’re more likely to find a home that fits your needs. The buying process may also feel less rushed, with fewer buyers competing for each home.

Hannah Jones, Senior Economic Research Analyst at Realtor.com, adds:

“Though still lower than pre-pandemic, burgeoning home supply means buyers have more options…”

This shift means less pressure and more time for you to explore homes that meet your unique requirements without feeling hurried by intense competition.

Slower Home Price Growth

Over the past few years, low inventory drove fierce competition, leading to sharp price increases. However, as more homes come on the market, this trend is easing. In certain areas, inventory levels have even surpassed pre-pandemic counts, and home price growth has slowed or leveled off.

Lance Lambert, Co-Founder of ResiClub, notes:

“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”

Slower price growth may help make homes more affordable. Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), explains:

“For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.”

Remember, though, that market conditions and price trends can vary from one location to another. Having an experienced real estate agent who understands your local market can help you navigate these dynamics effectively and make the most of these new opportunities.

Bottom Line

With more homes to choose from and slowing price growth, now might be a great time to find a home that aligns with your needs and budget. Reach out to discuss the expanding options available in today’s market and see how we can help make your home search a success.