Are There More Homes for Sale Where You Live?
Buyers Herbert Riggs August 12, 2024
Buyers Herbert Riggs August 12, 2024
The housing market has seen a notable increase in the supply of homes for sale since the beginning of this year, marking a significant improvement. According to recent data from Realtor.com, there are now 36.6% more homes actively for sale nationally compared to the same time last year. This surge in supply provides homebuyers with a much broader range of options than they would have had just a year ago. Additionally, with the improvement in supply, homebuyers are gaining some negotiation power. If you've been deterred from buying a home in recent years due to limited inventory, this news should come as a welcome relief.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), emphasizes the positive impact of increased housing supply on consumers, stating, "Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."
However, it's important to maintain perspective. Despite the growth in inventory, this does not indicate an oversupply of homes on the market. There are still not enough homes for sale to cause a crash in prices. When comparing today's inventory levels to more normal, pre-pandemic numbers (2017–2019), there are still roughly 29% fewer homes actively for sale. (see graph below):
While we have seen an almost 37% increase year-over-year, we have not yet returned to the inventory levels typical of a normal market. As Bill McBride, Housing Analyst for Calculated Risk, points out, "Currently, inventory is increasing year-over-year but is still well below pre-pandemic levels."
This is to be expected, as it will take some time for the country to reach the typical level of homes for sale. However, the good news for buyers is that in some select markets, this is closer to becoming a reality.
Here's a breakdown of the current inventory growth by region (see graph below):
Real estate is inherently local. To understand the inventory situation in your area, consider contacting a local agent. They can provide insight into the local market conditions and how they compare to the national trends. You might discover even greater opportunities for relocation right where you are.
The supply of homes across the country is improving in a big way. As a buyer, that gives you more options for your home search, and ultimately, a better chance of finding what you like. So, what are you looking for in a home? And what’s your budget? Let’s go over that together to find the options that may be right for you.
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