You may have heard that the number of homes for sale isn’t growing as quickly as it was. If you’re planning to move, that might have you wondering if you’ll still find a home you love.
But that could be about to change. Here’s why you may soon have more homes to choose from.
Growth Has Slowed, But It Hasn’t Stopped
According to Realtor.com, active listings were up 2.1% year over year in July. That’s a big slowdown from the 10% increase in January and the 31.5% jump in May 2025. So, while inventory is still growing, it’s happening at a much slower pace.
Over the past three months, inventory growth has stayed in about the same range. That could be a sign the slowdown is starting to level off.
So, what does that mean for you if you’re planning to make a move?
Homes are still coming onto the market. Every bar shows a period when inventory increased, so don’t get discouraged or feel like your options are disappearing. And with the numbers becoming more stable lately, that’s an encouraging sign.
The Most Homes for Sale Since 2019
Compared to the record lows of 2021, inventory has come back significantly. Nationally, the number of homes for sale has increased year over year for 33 straight months, and inventory has nearly doubled in just a few years. So, don’t focus too much on how quickly it’s growing right now.
July was actually the strongest month for inventory since 2019, which is an encouraging sign for buyers.
We’re still about 150,000 listings short of pre pandemic levels, but the market is getting much closer to normal. In fact, experts think we could be back to 2019 inventory levels by the end of this year, even with the recent slowdown.
And surprisingly, mortgage rates may be a big reason why.
Why Higher Rates May Actually Help Inventory Grow
Here’s how it works. When mortgage rates rise, inventory tends to rise too. As Mike Simonsen, Chief Economist at Compass, explains:
““When rates rise; inventory rises. When rates fall; inventory falls. So, from July last year to March this year, rates ease lower and all the inventory growth of the past several years evaporated. If rates move higher from here or stay elevated for [a] longer period of time, then we should expect supply to build again.”
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Rates are expected to stay in the mid to upper 6% range for a while, and Realtor.com’s latest forecast expects inventory to finish 2026 up 3.6% from last year.
That means two things:
Inventory growth could pick up a bit as we move through the rest of the year.
By the end of the year, inventory is expected to be back around historically normal levels, close to where it was at the end of 2019.
For buyers, that’s good news. Even if you’re not thrilled with today’s rates, they’re helping bring more homes onto the market. More homes means more choices, more negotiating power, and less pressure to rush into a decision.
Bottom Line
The number of homes for sale is growing, and that means more options for your next move. Want to see what’s available in our area? Reach out, and let’s take a look together.
