Everything Homebuyers Need to Know About the Current Housing Inventory
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.
Home buyers today have more options than they did last year due to the increase in houses for sale. According to Calculated Risk, for the week ending November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options available to you during your home search may help boost your confidence and encourage you to make a move.
In order to help you understand what is taking place in the housing market and how it will affect you, here is where the increased housing supply is coming from.
What Caused the Growth in Housing Inventory This Year?
The increase in housing supply we've seen this year isn't coming from where you think it is. Rather than an 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).
Higher mortgage rates and home prices have helped to moderate the buyer demand frenzy, which has in turn slowed down the pace of sales. The sales pace has decreased, and because of that, the inventory has increased.
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:
What This Means for Your Home Search
Regardless of the source, the increase in housing supply is good for buyers. More homes available for sale mean you have more options to choose from as you search for your next home, and you may even have more time to consider them.
If you were unable to find or buy a house you liked last year, this may be the news you're looking for. By searching today, you'll have many more options available to you and be less likely to get homesick this holiday season.
Remember that overall housing supply is still low, so it won't be easy; it'll just be less difficult than it was at this time last year. A recent article from realtor.com says:
“Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”
If you're looking for a new home, now is the ideal time to start your search. With more housing options available, you're sure to find your perfect match. But why go through it alone? A local real estate professional can help guide you along the way and make sure you get the best deal possible.
Let's connect if you're ready to look at houses on the market in our area.