What’s the Truth About Today’s Housing Inventory?
While the narrative in recent years has centered around the scarcity of homes on the market, the latest national data from Realtor.com might introduce a touch of confusion. This is because the data indicates that inventory is experiencing slight month-over-month growth in numerous regions across the country. (see the blue states in the map below):
As the map shows, nationally, housing supply increased just over 5% last month.
Does That Mean the Days of Limited Inventory Are Over?
This might prompt you to question: have we moved past the era of limited housing supply? In brief, no. It's crucial to consider the context. Despite headlines suggesting an increase in inventory, the data also indicates that there are still markedly fewer homes for sale compared to what would typically be seen in a more conventional market.
The graph below compares the latest active listing counts (homes currently available for sale) with the most recent normal years in the housing market (2017-2019):
As Lance Lambert, Founder, ResiClub Analytics, explains:
“Housing market inventory is so far below pre-pandemic levels that October’s big jump is still just a drop in the bucket.”
What does that mean for you? Remember, real estate is hyper-local. Partnering with a trusted real estate agent will help you gain a better understanding of the inventory situation in your specific market.
If you’re looking to buy, you may have slightly more options than you did in recent months, but you still need to brace for low inventory. A great agent will be able to share their expertise and key strategies that have helped other buyers navigate today’s ongoing low housing supply.
And, if you’re trying to sell, rest assured you haven’t missed your window of opportunity to potentially get multiple offers or see your house sell quickly. While inventory has ticked up some nationally, overall, it’s still low and may be down even more in your area.
If you're in the market to buy or sell a home, reach out to a local real estate agent to ensure you're well-informed about the current trends, including the state of today's housing supply.