Inventory. You may remember it being famously (and frustratingly) tacked on after the words “there is no” during the pandemic. Not to fear, the word has made a turn for the positive once again! Great news!
According to a recent report, for the week ending in November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options for your home search may be exactly what you need to feel confident about making a move. If you’re thinking about buying a home, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market. That’s a lot even if your juggling skills are up to par.
Here’s a look at where the increased housing supply is coming from so you can get a better sense of what’s happening in the market today and what it means for you.
What Caused the Growth in Housing Inventory This Year?
Are new homeowners now jumping ship and listing the homes they just bought? No, the increase we’ve seen in housing supply this year isn’t from the source you think it is. Rather than the influx of recent homeowners listing their houses for sale (known as new listings), the primary reason the supply has grown is because homes are staying on the market a bit longer (known as active listings). It’s more accumulation, less liquidation.
That’s happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand, which has slowed down the pace of sales. And, as the pace of sales has eased, inventory has grown as a result.
The graph below uses data from realtor.com to show that it’s active listings, not new listings, that have driven the growth we’ve seen over the past few months:
And while overall inventory gains may slow down this winter due to typical housing market seasonality, you still have a chance to capitalize on the current supply.
What This Means for Your Home Search
Long story, short, the increase in available housing supply is good for buyers. Good news is well, good. More homes available for sale means you have more options to choose from as you search for your next home, and you may even have more time to consider them. That house with the gingerbread trim and double ovens IS out there waiting for you.
So, if you tried to buy a home last year and lost out in a bidding war or just couldn’t find something you liked, this may be the news you’ve been waiting for. If you start your search today, those additional options should make it less difficult to find a home you love, especially as some other buyers pause their search this holiday season.
Just remember, that the housing supply is still low overall — not yet to pre-pandemic levels. So while it won’t be as easy as paint by numbers, it will be less challenging than it was at this time last year.
The news is good and inventory is no longer a dirty word! The increase in housing supply helps put you in a great position to kick off the new year in your dream home. And who better to help you find it than a trusted, local real estate professional? If you’re ready to jump into the housing market and see what’s available in our local area, let’s connect.