Are More Homes Coming onto the Market?

A crucial determinant influencing the current market is the supply of homes for sale. If you're contemplating whether to put your house on the market, this presents a significant advantage at the moment. With housing inventory at such low levels, your home will garner attention, particularly if it is appropriately priced.

However, there are indications of an emerging trend where more properties are being listed for sale. According to the most recent data, there is an upward trajectory in new listings, which warrants attention. Let's delve into the significance of this development and how it could potentially impact you.

More Homes Are Coming onto the Market than Usual

It's common knowledge that the spring buying season is traditionally the most active period in the housing market every year. Consequently, there's a foreseeable surge in the number of recently listed homes during the initial half of the year. Sellers are well aware of this trend and prepare accordingly for the months when buyer activity is at its peak. However, as the school year begins and the holiday season approaches, the market tends to slow down, and this is an expected occurrence.

However, what's truly unexpected is this: According to the most recent data provided by Realtor.com, there has been a rise in the number of homeowners listing their properties later in the year than is customary. Such a peak at this point in the year is atypical. The graph below illustrates both the regular seasonal pattern and the unusual spike in August.

As Realtor.com explains:

"While the shortage of available homes persists, August experienced an uncommon increase in newly listed properties in comparison to July. This development is potentially indicative of a resurgence in seller participation as we approach the fall season..."

Although this data encompasses only a single month, its unusual nature warrants attention. It is still premature to definitively state whether this trend will persist, but it's essential to proactively monitor it if it does.

What This Means for You

If you've been delaying the decision to sell your home, the current moment might be the ideal opportunity to take action. This is because, if the trend persists, waiting longer could result in increased competition. Additionally, if your neighbor decides to list their property as well, you may find yourself vying for potential buyers' attention with them. By selling now, you can get a head start and potentially beat your neighbors to the market.

However, despite the influx of additional homes entering the market, it's important to note that the overall supply in the market remains significantly below typical levels. Restoring a balanced inventory won't happen overnight, as illustrated in the graph below. This perspective will help you appreciate the current opportunities that are still available.

Bottom Line

While inventory remains scarce, it's advisable not to delay until additional competition emerges in your neighborhood. The present moment presents an exceptional opportunity for you to sell your house. Consider reaching out to a real estate agent to explore the advantages of listing your property today, before an influx of new homes enters the market.