Is Housing Inventory Improving?

 Buyers: Is There Hope on the Horizon?

The housing market, once characterized by breakneck bidding wars and lightning-fast sales, might be experiencing a shift. Housing inventory, which refers to the number of homes available for purchase, has been steadily increasing in recent months.

“Nationally, we’re seeing inventory levels approaching pre-pandemic norms,” says Mike Simonsen, President of real estate data company Altos Research. “While some markets remain competitive, this rise in available homes suggests a more balanced playing field for buyers.”

This trend aligns with data from the National Association of Realtors (NAR), which shows total housing inventory in the US reaching 1.07 million units in February 2024, up from a record low of 860,000 in January 2022.

While a welcome change for homebuyers, the impact on prices remains to be seen. “Inventory increases may eventually lead to price stabilization or even slight corrections in some areas,” says Leslie Rose, a housing economist. “However, housing affordability will depend heavily on mortgage interest rates as well.”

Experts anticipate a more nuanced market moving forward. “While a seller’s market might be waning, a balanced market doesn’t necessarily mean a buyer’s paradise,” cautions Rose. “Understanding local market data and staying informed will be crucial for both buyers and sellers in the coming months.”