What Buyers Need To Know About the Inventory of Homes Available for Sale
If you're thinking about buying a home, you're probably juggling your needs, current mortgage rates, home prices, your schedule, and other factors to determine whether you want to enter the market.
If this describes you, here's one important factor to consider: there are more homes for sale today than there were at this time last year. According to Calculated Risk, there were 47.7% more homes for sale in the week ending November 18th than there were at the same time in 2021. Having more options for your home search could be just what you need to feel confident about making a move.
Here's a look at where the increased housing supply is coming from so you can understand what's going on in the market right now and what it means for you.
What Caused the Growth in Housing Inventory This Year?
The increase in housing supply we've seen this year isn't coming from where you think it is. Rather than an influx of new homeowners listing their homes for sale (known as new listings), the primary reason the supply has increased is that homes are staying on the market for longer periods of time (known as active listings).
Higher mortgage rates and home prices have helped to moderate the peak frenzy of buyer demand, which has slowed the pace of sales. And, as the pace of sales has slowed, inventory has increased.
The graph below, based on data from realtor.com, shows that it is active listings, not new listings, that have driven the recent growth:
And, while overall inventory gains may slow this winter due to typical housing market seasonality, you still have time to take advantage of the current supply.
What This Means for Your Home Search
Whatever the source, the increase in available housing supply is beneficial to buyers. More homes for sale means you have more options to consider when looking for your next home, and you may even have more time to do so.
So, if you tried to buy a home last year and were unsuccessful due to a bidding war or simply couldn't find something you liked, this could be the good news you've been looking for. If you begin your search today, those additional options should make it easier to find a home you love, especially since some other buyers are taking a break during the holiday season.
Remember that the overall housing supply is still low, so it won't be easy - it'll just be less difficult than it was at this time last year. According to a recent realtor.com article:
“Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”
The increased supply of housing puts you in a great position to start the new year in your dream home. And who better to assist you in your search than a reputable, local real estate professional?
Connect with a trusted real estate professional today if you're ready to enter the housing market and see what's available in your area.
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