Does More Inventory Translate Into More Options?

As new data comes out, we’re getting an updated picture of why housing supply is increasing this year. Bill McBride, Author of Calculated Risk, explains:

“We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand – likely because of higher mortgage rates.”

Basically, the inventory growth is primarily from homes staying on the market for a longer period of time (known as active listings). And that’s happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand.

Why This Growth Is Good News for Buyers

Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A recent article from realtor.com explains just how significant the inventory growth has been and why it’s good news for your plans to buy:

“Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”

If you’ve had trouble finding a home that meets your needs growing inventory heralds good news.  The increase in product has has tempered the fever that defined the past two years. If you’re ready to jump into the market and take advantage of the increasing supply of homes for sale, let’s connect today.