One of the most encouraging developments in the current housing landscape is the significant increase in the supply of homes available for sale since the start of this year.

According to the latest data from Realtor.com, the number of homes actively for sale nationwide has increased by 36.6% compared to the same time last year. This is a substantial improvement, providing you with significantly more options as you consider your next move. With the increase in supply, you may also regain some negotiation power. If you've been contemplating homeownership over the past few years but were deterred by the limited inventory, this development should be welcome news.

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

“ “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”
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— Lawrence Yun, Chief Economist at the National Association of Realtors (NAR)

Even though the number of homes for sale has increased, it doesn't mean we're facing an oversupply that will cause prices to crash. When you compare the current inventory levels to the more typical pre-pandemic years of 2017-2019, there are still about 29% fewer homes actively on the market (as shown in the graph below). So while the inventory has grown, it's still not enough to create a significant imbalance between supply and demand.

Here's a rephrased version of the prompt in a more conversational tone:

Although we've seen a significant 37% increase in year-over-year sales, the current inventory levels are still not back to what we'd consider a normal market. We've got some ground to make up before we reach that point.

As Bill McBride, Housing Analyst for Calculated Risk, explains:

“ “ . . . currently inventory is increasing year-over-year but is still well below pre-pandemic levels.”
”

— Bill McBride, Housing Analyst for Calculated Risk

That's understandable. As a nation, it'll take some time to return to the usual number of homes on the market. But the silver lining for buyers is that in certain areas, we're closer to seeing that reality come to fruition.

According to the graph, the inventory growth across different regions can be summarized as follows:

Real estate is all about location, location, location. If you're curious about the inventory and market conditions in your specific area, the best thing to do is connect with a local real estate agent. They'll be able to provide you with detailed insights on what's happening in your neighborhood, and how it compares to the broader national trends. You might be surprised to find that there are even more opportunities available right where you are.

Bottom Line

The supply of homes across the country is improving significantly, which is great news for buyers. As a buyer, you now have more options to choose from during your home search, increasing your chances of finding the perfect property that meets your needs and preferences.

Sure, let's dive in. What are you looking for in a home? And what's your budget? I'd be happy to go over that with you to find the options that may be right for you.