Housing Inventory Shortage Spurs Seller's Advantage in Today's Market

Currently, one of the primary hurdles in the housing market is the scarcity of available homes for sale in comparison to the high demand from prospective buyers. To highlight the ongoing limitation in housing inventory, let's examine the most recent data on active listings—referring to homes available for sale within a specific month—when compared to typical levels.

According to a recent report from Realtor.com: 

"In June, the active inventory, on average, was 50.6% lower than the levels seen before the pandemic between 2017 and 2019."

The graph presented below serves as a visual representation, illustrating the extent to which the current numbers continue to fall behind the inventory levels observed in a more typical market, as supported by historical data.

It is important to mention that the years 2020-2022 are excluded from the graph to ensure a fair comparison. These years were characterized by highly unusual conditions in the housing market. By omitting them, the data is not distorted, allowing for a more accurate assessment.

By comparing the orange bars representing 2023 with the housing market's last stable years (2017-2019), it becomes evident that the number of active listings remains significantly below the established norm.

What Does This Mean for You? 

The current low inventory in the housing market makes it an opportune time to consider selling your house. Due to the limited options available, buyers have fewer choices compared to more typical years, which continues to influence significant housing market indicators. For instance, sellers will find satisfaction in the following data extracted from the latest Confidence Index provided by the National Association of Realtors (NAR):

With the housing market currently experiencing a scarcity of available homes, it presents a favorable opportunity to contemplate selling your house. The limited range of choices for buyers, in comparison to more standard years, has a lasting impact on crucial housing market indicators. As evidence, sellers will derive satisfaction from the subsequent data extracted from the latest Confidence Index published by the National Association of Realtors (NAR):

• There was a slight increase in the percentage of homes that sold within a month, reaching 74%.
• The median number of days on the market decreased to 18 days, indicating that properly priced homes continue to sell rapidly.
• There has been an increase in the average number of offers received on recently sold homes, reaching 3.3 offers.

Bottom Line

In a situation of such limited supply, your house is bound to attract significant attention. Consequently, sellers are experiencing faster sales and receiving a higher number of offers for their properties at present. If you have contemplated selling, this is the opportune moment to take action. Initiate the process by reaching out to a reliable real estate professional to commence your journey.