Is Inventory Getting Back To Normal?

After years of it feeling almost impossible to find a 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 heres what you need to know. That level of growth is going to vary based on where you live. And thats why you need an agents local market expertise.

Heres a quick rundown of the current inventory situation, so you know whats happening and what to expect.

Significant Growth Across the Nation

Nationally, the number of homes for sale is rising and thats true in all regions of the country. Thats 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, its 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 cant 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 whats 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, its not a full-on buyers market yet, but its 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 theyve had in years . . . the market is starting to rebalance.

How Much Growth Weve Seen Varies by Area

But, how long its 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 havent grown quite that much yet.

Lets take a look at another graph. This time, well 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 weve seen lately. The red shows where things have improved, but are still well below the norm (see graph below):

Heres what that means for you. Across the board, you have more options now than you wouldve just one year ago. And thats 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. So, lean on a local agent to find out what the inventory situation looks like where you want to live. Theyll be able to tell you how much growth theyve seen locally and how to tailor your home search based on whats available in that area. This is just one of the reasons a local agents perspective matters.

Bottom Line

Inventory is getting better, but how long it takes to get back to normal is going to be different based on where youre looking to buy. Talk with a local real estate agent about whats happening in your local market and how it affects your next move.

Whats one thing youve noticed lately that makes the market feel different than it did a year or two ago?