More Homes, Slower Price Growth: What It Means for Buyers Today

Right now, the housing market is offering more opportunities for buyers than we’ve seen in years. This shift could be a game changer if you’re ready to purchase a home. Here’s why:

Expanded Options for Buyers

The number of homes for sale has significantly increased. According to a recent article from Realtor.com:

“In October, there were 29.2% more homes actively for sale on a typical day compared to the same time in 2023. This marks the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”

While inventory levels haven’t fully returned to pre-pandemic numbers, this growth is a step in the right direction (see graph below).

With an increased number of homes for sale, you now have more options than before. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, puts it:

“While still below pre-pandemic levels, the growing supply of homes means buyers have more choices . . .”

This gives you a better chance of finding a home that suits your needs. Plus, with more listings available, the buying process may feel less rushed, as reduced competition means you can take your time.

Home Price Growth Is Easing

When there aren’t many homes for sale, buyers have to compete more fiercely for the ones that are available. That’s what happened a few years ago, and it’s what drove prices up so quickly.

But now, the increasing number of homes on the market is causing home price growth to slow down (see graph below):

In the past, limited inventory forced buyers to compete intensely, driving up prices at a rapid pace. However, with the current rise in available homes, price growth is beginning to slow down (see graph below).

In certain areas, the number of homes for sale has not only returned to normal but even surpassed pre-pandemic levels. This shift is leading to slower or stalled price growth in these markets. As Lance Lambert, Co-Founder of ResiClub, explains:

“In general, housing markets where active inventory has returned to pre-pandemic 2019 levels are experiencing softened home price growth or even outright declines from their 2022 peak.”

This trend could make it easier to find a home that fits your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), notes:

“For the third consecutive month, U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.”

But remember, inventory levels and home prices are going to vary by market.

However, keep in mind that inventory levels and price trends differ by market. That’s where a knowledgeable real estate agent can be invaluable. They’ll help you navigate local trends and find a home that meets your needs and budget.

Bottom Line

The increase in available housing options, combined with the slower pace of home price growth, creates a unique opportunity to find a home that aligns perfectly with your lifestyle and budget. This shift in the market means you have more flexibility to explore properties that meet your needs without feeling rushed by intense competition. If you're ready to take advantage of the expanding choices available, don’t hesitate to reach out. I’d be happy to guide you through the process and discuss how these changes can benefit your home search.