Is the Number of Homes for Sale Increasing in Your Area?

One of the most promising developments in today's housing market is the substantial increase in the number of homes for sale since the beginning of the year. Recent data from Realtor.com reveals that, on a national level, there are currently 36.6% more homes actively listed compared to the same time last year. This is a significant boost, offering you far more options for your next move than you would have had just a year ago. With the improved supply, buyers are also regaining some negotiation power. So, if you've been considering purchasing a home but were discouraged by the limited inventory in recent years, this is encouraging news.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes: 

"Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."

However, it's important to keep things in perspective. While inventory has increased, it doesn't mean we've suddenly shifted to an oversupply of homes. There are still nowhere near enough homes on the market to cause prices to crash. When compared to pre-pandemic inventory levels (2017–2019), there are still approximately 29% fewer homes actively for sale today (see graph below).

So, even though inventory has increased by nearly 37% compared to last year, we're still not back to the levels typically seen in a normal market. As Bill McBride, Housing Analyst for Calculated Risk, points out: 

"... currently, inventory is rising year-over-year but remains well below pre-pandemic levels." 

But that's okay—this is expected. It will take time for the country to return to a typical level of homes for sale. The good news for buyers is that in some select markets, we’re getting closer to that reality. 

Here’s an overview of the current inventory growth by region (see graph below):

Real estate is always highly localized. If you're curious about the inventory numbers in your area, connect with a local agent. They can provide insights into the current market and how it compares to national trends. You might discover even greater opportunities to make a move right where you are.

Bottom Line

The national housing supply is seeing significant improvement, giving you more options in your home search and a better chance of finding something you love. So, what are you looking for in a home, and what’s your budget? Connect with a local agent to discuss your needs and explore the options that might be perfect for you.