After years of struggling to find the right home to buy, things are finally looking up.

Inventory is increasing nationwide, which means you have more choices for your next move. However, it’s important to understand that this growth can differ depending on your location. That’s why having an agent with local market knowledge is essential.

Here’s a brief overview of the current inventory situation, so you can understand what’s going on and what to anticipate.

Significant Growth Across the Nation

The number of homes available for sale is increasing across the country, and this trend is happening in every region. According to data from Realtor.com, each of the four regions has seen inventory rise by at least 19% compared to last year. In the West, the increase is nearly 41% year-over-year.

There are two key reasons for this increase:

  • More homeowners are starting to put their homes on the market. A lot of them had been holding off, hoping mortgage rates would come down. But now, some are deciding they just can’t wait any longer. In fact, May saw more new listings than any May in the last three years.

  • Homes are taking a bit longer to sell these days. That means listings are sticking around on the market longer, which adds to the overall number of homes available. In May, the average home took 51 days to sell — a pace that’s actually getting closer to what's considered normal for the market.

More homes available for sale can lead to a more balanced market. For the past few years, sellers have had the advantage, but we're beginning to see a shift. Nationwide, while we’re not completely in a buyer’s market yet, it’s moving towards a healthier situation, particularly for those looking to buy a home. Danielle Hale, Chief Economist at Realtor.com, highlights this change.

“The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years . . . the market is starting to rebalance.”
— Danielle Hale, Chief Economist at Realtor.com

How Much Growth We’ve Seen Varies by Area

How long it will take to achieve true balance can differ depending on the area. Some regions are seeing inventory return to normal levels, while others haven't experienced that same growth yet.

Let’s examine another graph. This time, we’ll compare the current data, which you’ve already seen, to the housing market trends from the last normal years, specifically from 2017 to 2019.

In this comparison, the green areas indicate regions that have returned to more normal inventory levels based on recent growth. The red areas show regions that have made progress but are still significantly below the typical levels. Check out the graph below for more details.

Here’s what this means for you: you now have a lot more options compared to just a year ago. That’s definitely a positive change. With more choices available, it should be a little easier for you to find a home that you truly love.

Not every market is the same—some may take a little longer to return to normal levels. That's where having a local agent can really help. They can give you insights into the inventory situation in your desired neighborhood. They'll let you know how much local growth has occurred and help you customize your home search based on what's currently available in that area. This is just one reason why a local agent's expertise is so valuable.

Bottom Line

Inventory is improving, but the time it takes to return to normal will vary depending on your target area. Let's discuss the current state of our local market and how it impacts your next steps.

Have you noticed anything lately that makes the market feel different compared to a year or two ago?