More Homes, Slower Price Growth – What It Means for You as a Buyer

If you’re considering buying a home, the current housing market might just be in your favor. With more homes for sale than we've seen in recent years, there are two key reasons why this shift could be a game changer for buyers like you.

More Choices for Buyers

This year has brought a noticeable increase in the number of homes on the market. A recent article from Realtor.com highlights this rise in available homes:

"There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019."

While inventory hasn’t completely returned to pre-pandemic levels, this growth is a significant improvement (see graph below).

With this larger inventory, you have more options to find a home that suits your lifestyle and needs. Hannah Jones, a Senior Economic Research Analyst at Realtor.com, reinforces this point:

"Though still lower than pre-pandemic, burgeoning home supply means buyers have more options..."

This expanded selection gives you the luxury of more time and choice, reducing the rush that buyers often feel when there are fewer homes available. With more properties on the market, the competition may also be less intense.

Slower Home Price Growth

During times of limited supply, buyers compete heavily for available homes, driving prices up. Recently, however, as inventory has increased, the rapid rise in home prices has started to decelerate (see graph below).

In certain areas, the number of available homes has even surpassed pre-pandemic levels, leading to flat or even declining prices. Lance Lambert, Co-Founder of ResiClub, notes:

"Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak."

This slowdown in price growth can be beneficial if you’re budget-conscious. According to Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA):

"For the third consecutive month U.S. house prices showed little movement... relatively flat house prices may improve housing affordability."

While these trends are promising, it's essential to remember that housing conditions vary by location. Having a knowledgeable local real estate agent can make a difference, as they’ll be well-versed in current market dynamics in your area, helping you navigate inventory and pricing trends to find the right fit.

Bottom Line

The current market conditions – more options and slower price growth – create a favorable environment if you’re looking to buy. Take advantage of these changes by connecting with a local real estate agent who can guide you through the increased opportunities in today’s housing market.