After years of it feeling almost impossible to find a home you want to buy, things are changing for the better.
Nationally, inventory is growing, and that gives you more options for your move. But here’s what you need to know. That level of growth is going to vary based on where you live. And that’s why you need an agent’s local market expertise.
Here’s a quick rundown of the current inventory situation, so you know what’s happening and what to expect.
Significant Growth Across the Nation
Nationally, the number of homes for sale is rising – and that’s true in all regions of the country. That’s shown in this data from Realtor.com. In each of the four regions, inventory is up at least 19% compared to the same time last year. In the West, it’s actually up almost 41% year-over-year (see graph below):
There are two main reasons for this increase:
- More sellers are listing their homes. Many homeowners have been waiting for mortgage rates to drop before making a move. Now, some have decided they can’t wait any longer. May had more new listings than any May in the past three years.
- Homes are taking longer to sell. That means listings are staying on the market longer, which increases the total number of homes available. In May, the typical home took 51 days to sell, much closer to what’s more typical for the market.
More homes for sale help the market become more balanced. For the past few years, sellers have had the upper hand. Now, things are shifting. Nationally, it’s not a full-on buyer’s market yet, but it’s heading toward a healthier place, especially for homebuyers. Danielle Hale, Chief Economist at Realtor.com, explains:
“The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years . . . the market is starting to rebalance.”
How Much Growth We’ve Seen Varies by Area
But, how long it’s going to take to achieve true balance is going to vary by area. Some parts of the country are seeing inventory bounce back to normal levels, while others haven’t grown quite that much yet.
Let’s take a look at another graph. This time, we’ll compare the current data (what you already saw) to the last normal years in the housing market (2017-2019).
In this comparison, the green shows which regions are back at more typical levels for inventory based on the growth we’ve seen lately. The red shows where things have improved, but are still well below the norm (see graph below):
Here’s what that means for you. Across the board, you have more options now than you would’ve just one year ago. And that’s a good thing. More choices mean it should be a bit easier to find a home you love.
However, not all markets are the same – some will take a bit longer to return to more typical levels. So, lean on a local agent to find out what the inventory situation looks like where you want to live. They’ll be able to tell you how much growth they’ve seen locally and how to tailor your home search based on what’s available in that area. This is just one of the reasons a local agent’s perspective matters.
Bottom Line
Inventory is improving, but the time it takes to return to normal will vary depending on where you plan to buy. Let’s talk about what’s happening in our local market and how it affects your next move. Contact a licensed mortgage professional today to get started.
What’s one thing you’ve noticed lately that makes the market feel different from it did a year or two ago?
