A big question many homebuyers’ minds at the moment is: What’s happening with housing inventory right now?
The short answer is: Inventory is continuing to rise, and a lot of that has to do with a mild decline in buyer demand, and active listings.
The experts are stating that the conditions for buyers are less competitive than they were last year at this time or even earlier this year. A general increase in available inventory has given buyers both more options to consider, and more time to consider them.
Rising mortgage rates have softened buyer demand. The dip in buyer activity is now taking place as more homes for sale become available, and this gives way to a general market rebalancing. The frenzy of the pandemic is very likely behind us in many regards, and that includes how the housing market is unfolding.
While more inventory is out there because fewer buyers are in the game at the moment, we are still in a sellers’ market. Yet for the first time in quite a while, there are more options for the buyers who are actively seeking homes.
The trend in the market right now is that there are more active listings than new listings. This means that homes are staying on the market a little bit longer, giving buyers more time and more options.
On the topic of buyer options, recent data from Realtor.com shows that buyers now have more room for negotiation. In a recent survey of buyers/sellers in the last year, it was revealed that on various occasions prices were dropped after appraisals, and sellers paid for repairs and even buyers’ closing costs.
The essence of this news is that there are more choices for buyers this fall – a more moderate pace of home selling and more listings to choose from. Softening price growth – the topic of a future story – provides some breathing room for buyers searching right now, typically the best time to buy a home.
Buyers who have been sitting on the sidelines or temporarily stepped out of the process due to difficulty shopping for a home, now may be a great time to jump back in, with more options available and more time to consider them.