Is Inventory Improving?

After years of feeling like it was almost impossible to find the home you want to buy, things are changing for the better.   Nationally, inventory is growing, and that gives you more options for your move. But here’s what you need to know. That level of growth is going to vary based on where you live.   Here’s a quick rundown of the current inventory situation, so you know what’s happening and what to expect.   Significant Growth Across the Nation   Nationally, the number of homes for sale is rising – and that’s true in all regions of the country. That’s shown in this data from Realtor.com. In each of the four regions, inventory is up at least 19% compared to the same time last year. In the West, it’s actually up almost 41% year-over-year (see graph below):       There are two main reasons for this increase:  

• More sellers are listing their homes. Many homeowners have been waiting for mortgage rates to drop before making a move. Now, some have decided they can’t wait any longer. May had more new listings than any May in the past three years.
• Homes are taking longer to sell. That means listings are staying on the market longer, which increases the total number of homes available. In May, the typical home took 51 days to sell – much closer to what’s more typical for the market.

  More homes for sale helps the market become more balanced. For the past few years, sellers have had the upper hand. Now, things are shifting. Nationally, it’s not a full-on buyer’s market yet, but it’s heading toward a healthier place, especially for homebuyers. Danielle Hale, Chief Economist at Realtor.com, explains:  

“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   But, how long it’s going to take to achieve true balance is going to vary by area. Some parts of the country are seeing inventory bounce all the way back to normal levels, while others haven’t grown quite that much yet.   Let’s take a look at another graph. This time, we’ll compare the current data (what you already saw) to the last normal years in the housing market (2017-2019).   In this comparison, the green shows which regions are back at more typical levels for inventory based on the growth we’ve seen lately. The red shows where things have improved, but are still well below the norm (see graph below):       Here’s what that means for you. Across the board, you have more options now than you would’ve just one year ago. And that’s a really good thing. More choices means it should be a bit easier to find a home you love.   But not all markets are the same – some will take a bit longer to get back to more typical levels.   Here on Cape Cod, the inventory of single-family homes is up nearly 17% comparing this past May to a year ago. Not surprisingly days on market are also up. (61 as opposed to 47 in May 2024.)   For sellers this means that competition is increasing, so it’s important that they price their homes right. What the neighbor up the street sold their home that’s “wasn’t as nice” for two years ago really doesn’t mean much.   For buyers, this means you have more options. The answer to the question “but where will I go” is getting easier.   Bottom Line   Inventory is getting better, but how long it takes to get back to normal is going to be different based on where you’re looking to buy. Let’s connect at 508-388-1994 or msennott@todayrealestate.com to review your options.   Mari and Hank