The Shifting Landscape of Housing Inventory: What Buyers and Sellers Need to Know

In the ever-evolving world of real estate, staying informed about the current housing market is crucial, whether you're considering buying or selling a home. This blog provides an up-to-date overview of the housing inventory situation as of November 2023. Understanding the local housing supply is vital for making informed decisions in your real estate journey.

Are There Actually More Homes for Sale Right Now?

The prevailing narrative in recent years has been the severe shortage of homes available for sale. However, the latest national data may challenge this narrative. According to Realtor.com, housing inventory has shown slight month-over-month growth in many parts of the country, as indicated by the blue states on the map below:

Nationally, housing supply increased by just over 5% last month. This might lead you to question whether the era of limited housing inventory is coming to an end.

The Reality of Limited Inventory

While the increase in housing inventory is noteworthy, it's essential to provide context. The current data indicates that we are still far from having an abundant housing supply. To understand this better, let's compare the latest active listing counts (homes currently available for sale) with the inventory levels in the housing market during the more typical years of 2017-2019:

As Lance Lambert, Founder of ResiClub Analytics, points out:

“Housing market inventory is so far below pre-pandemic levels that October's big jump is still just a drop in the bucket.”

In other words, while there has been an increase in housing inventory, it is not sufficient to declare the end of the housing supply crisis. The real estate market is highly localized, and conditions can vary significantly from one area to another. To gain a comprehensive understanding of the inventory situation in your specific market, it's advisable to collaborate with a trusted local real estate agent.

What Does This Mean for Buyers and Sellers?

For Buyers:

While there may be slightly more options on the market compared to recent months, it's crucial to remain prepared for low inventory conditions.
Partnering with an experienced real estate agent is essential. They can provide expertise and strategies to help you navigate the challenges of a competitive market with limited housing supply.

For Sellers:

Sellers can take advantage of the ongoing low housing inventory. While inventory has increased at the national level, it may still be scarce in your local area.
This presents an opportunity to potentially receive multiple offers or sell your home quickly.
A trusted real estate agent can assist you in maximizing your home's value in a seller's market.

The current dynamics of the housing market show a nuanced picture. While there has been a recent increase in housing inventory, it's essential to recognize that inventory levels are still significantly lower than in more typical years. The real estate market is inherently local, and conditions can vary widely. Whether you're a buyer or a seller, connecting with a knowledgeable real estate professional is key to navigating the ever-shifting landscape of housing inventory effectively.

References: