The housing market is currently enjoying one of its brightest moments with a significant increase in the supply of homes for sale since the start of this year.

According to recent data from Realtor.com, there's been a 36.6% increase in available homes on the market compared to this time last year. This represents a promising trend, providing you with a wider array of options for your next move than were available just a year ago. Furthermore, with the supply on the rise, you're now in a better position to negotiate. If you've been holding off on purchasing a home due to the previously limited inventory, this comes as encouraging news.

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

It's crucial to note, however, that despite the growth in inventory, we haven't suddenly switched to an oversupply of homes on the market. There still aren't sufficient homes available to trigger a price crash. When compared to pre-pandemic inventory levels (2017–2019), there are still approximately 29% fewer homes actively for sale (see graph below):

While the year-over-year increase is almost 37%, the inventory hasn't quite returned to what would be considered normal market levels.

As Bill McBride, Housing Analyst for Calculated Risk, points out: “...currently inventory is increasing year-over-year but is still well below pre-pandemic levels.”

This is entirely normal and expected. It will take a while for the country to return to the usual level of homes for sale. However, for buyers, in some specific markets, this reality is closer than you might think.

Here's a snapshot of the current inventory growth by region (see graph below):

Remember, real estate is always local. If you're curious about inventory numbers in your area, don't hesitate to contact a local agent. They can provide insights on local trends and how they relate to the national market. You might discover even more opportunities to move in your area.

Bottom Line

In conclusion, the national supply of homes is showing significant improvements. As a buyer, this gives you a broader range of options during your home search, and ultimately, a higher probability of finding your dream home.

So, what are your home preferences? And what's your budget? Get in touch with a local agent to discuss these details and find the best options for you. Remember, the current market trends are in your favor!