Finding a home you want to buy has been nearly impossible for years, but now things are improving.
Inventory is increasing nationwide, which increases your moving options. Here’s what you should know, though. Depending on where you live, that growth rate will change. For this reason, you require an agent with knowledge of the local market.
To help you understand what’s going on and what to anticipate, here is a brief summary of the current inventory situation.
Significant Growth Across the Nation
There are more houses for sale nationwide, and this is the case in every part of the nation. This information from Realtor.com illustrates that. Compared to the same period last year, inventory is up at least 19% in each of the four regions. In fact, it’s up nearly 41% year over year in the West (see graph below):
There are two main reasons for this increase:
- Homes are being listed by more sellers. Before moving, a lot of homeowners have been waiting for mortgage rates to decline. Some have now determined that they can’t wait any longer. More new listings appeared in May than in any of the previous three years.
- The selling of homes is taking longer. As a result, there are more homes available overall because listings are remaining on the market for longer. The average home sold in May in 51 days, which is much closer to the market average.
The market becomes more balanced when there are more houses for sale. Sellers have been in control for the last few years. Things are changing now. Although it’s not quite a buyer’s market nationwide, things are starting to improve, particularly for homebuyers. According to Realtor.com Chief Economist Danielle Hale:
“The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years . . . the market is starting to rebalance.”
How Much Growth We’ve Seen Varies by Area
However, the time needed to reach true balance will differ depending on the location. While inventory hasn’t increased all that much yet in some regions of the nation, it is now returning to normal levels in others.
Let’s examine one more graph. This time, we’ll contrast the recent data—what you’ve already seen—with the previous typical housing market years, which are 2017–2019.
Based on the recent growth, the green in this comparison indicates which regions have returned to more normal inventory levels. As seen in the graph below, the red indicates areas that have improved but are still far below the norm:
Here are the implications for you. Generally speaking, you have more choices now than you did a year ago. And that’s a great thing. It should be a little simpler to find a home you love if you have more options.
However, some markets will take a little longer to return to more normal levels than others. Therefore, rely on a local agent to tell you about the inventory situation in the area where you wish to live. They can provide you with information about the amount of local growth they’ve witnessed and how to adjust your home search to the local real estate market. The viewpoint of a local agent is important for this reason, among others.
Bottom Line
Although inventory is improving, the time it takes for things to return to normal will vary depending on where you want to buy. Discuss current events in your local market and how they impact your next move with a local real estate agent.