Homebuying in 2025: Why Growing Inventory is Great News for Buyers

If you’ve been searching for a home, you know it hasn’t been easy in recent years. High prices, rising mortgage rates, and limited inventory have made the process challenging. And if you're worried about finding a home within your budget, you’re not alone.

But here’s the bright spot: more homes are becoming available. Inventory is growing, both for existing homes (previously owned properties) and new construction. That means you have more choices than before. Let’s dive into these two major trends and what they mean for your home search.

1. Existing Home Inventory Is Up 22%

According to Realtor.com, the number of existing homes for sale increased by an impressive 22% in 2024. And experts predict inventory will continue rising, with projections showing an additional 11-15% growth by year’s end (see graph below):

This increase in listings is great news for buyers. If you’ve struggled to find a home that fits your needs, the expanding selection gives you a better chance of discovering one that checks all your boxes. More options also mean less competition for each property, which can help create a more balanced market.

As Ralph McLaughlin, Senior Economist at Realtor.com, puts it:

“It could be a particularly good time to get out into the market . . . you're going to have more choice. And that's not something that buyers have really had much over the past several years.”

Simply put, if you haven’t found the right home yet, this could be the opportunity you’ve been waiting for.

2. More Newly Built Homes Are Available

Another big plus for buyers is the rise in new home construction. According to the Census Bureau and the National Association of Realtors (NAR), 31.1% of all homes on the market today are newly built—that’s nearly one in three (see graph below):

This surge in new builds isn’t because builders are overproducing. It’s actually a response to years of underbuilding. Now, they’re catching up, providing buyers with more options, especially in entry-level price ranges.

And here’s something many buyers don’t realize: new homes might be more affordable than you think. Many builders are focusing on smaller, more budget-friendly homes, narrowing the price gap between new and existing properties. As CNET explains:

“If you live in an area where there's a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you’ve been searching for a home and haven’t considered new construction, you could be missing out on nearly a third of the available inventory.

Bottom Line

More homes on the market mean more opportunities for buyers like you. Whether you're looking for an existing home or considering new construction, increased inventory could be the key to finding your perfect match.

Let’s connect and explore what’s available in our area. What features are most important to you in your next home? Share your wishlist, and I’ll put together a selection of properties you’ll love!

For any questions or additional details, feel free to reach out to Mike Panza and the team at Panza Home Group. They’re here to guide you every step of the way. Visit Panza Home Group for more information.