The real estate market has been a hot topic for the past few years, especially when it comes to the limited inventory available. However, recent national data may leave you feeling a bit confused. Realtor.com shows that the housing inventory is actually growing month-over-month in many parts of the country. If you are planning to make a move, it is important to have the latest information on the housing market. In this blog post, we are going to take a closer look at the supply of homes for sale today.
It is not surprising that the housing inventory has been a hot topic in recent years. Buyers have been eagerly searching for their dream homes, while sellers have been hesitant to sell due to the low supply of homes and high demand. However, recent data shows that there has been a slight uptick in inventory in some parts of the country. According to Realtor.com, the national housing supply increased just over 5% last month. This is great news for buyers, but it doesn’t necessarily mean the days of limited inventory are over.
Context is important when it comes to understanding the housing inventory. While there has been a slight increase in housing supply, data shows that there are still significantly fewer homes for sale than there would usually be in a more normal market. The graph below compares the latest active listing counts with the most recent normal years in the housing market (2017-2019). As you can see, the current inventory falls short of the inventory levels of a normal market.
So, what does this mean for buyers and sellers? If you are a buyer, 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 successfully navigate a competitive market. On the other hand, if you are a seller, it is still a great time to sell. With low inventory, your home may sell faster and for a higher price.
One reason for the slight uptick in inventory is due to the increase in new construction. According to the National Association of Home Builders, builder confidence reached a record high in November of 2020. This optimism is reflected in the increase in building permits and housing starts. As more new homes are built, it can help alleviate some of the pressure on the housing inventory.
Lastly, the housing inventory varies from region to region. While some areas may be experiencing an increase in inventory, others may still be facing a tight market. It is important to work with a local real estate agent who has a pulse on your specific market. They can help you determine the current inventory levels and develop a strategy to help you reach your real estate goals.
In conclusion, recent national data may suggest that the housing inventory is growing, but it is important to consider the context. While buyers may have slightly more options, inventory levels still fall short of a normal market. However, with an increase in new construction and high builder confidence, there is hope for buyers and sellers alike. It is important to work with a knowledgeable real estate agent who can guide you through the current market conditions and help you achieve your real estate goals.