Buyer Bright Spot: There Are More Homes on the Market

Buyer Bright Spot: There Are More Homes on the Market

In recent years, homebuyers have faced challenges due to increasing home prices and mortgage rates, which can make it seem daunting to find a home within your budget. However, it's important to note that the availability of homes for sale has significantly increased recently, which includes both previously lived-in homes and new constructions. This increase in the housing inventory could potentially make it easier for you to find the home you’ve been looking for.

1. There Are 22% More Existing Homes for Sale

Data from Realtor.com indicates that the inventory of existing homes for sale increased by an impressive 22% in 2024. Furthermore, the outlook for this year is even more promising, with experts predicting that the number of available homes will grow by an additional 11-15% by the end of the year (refer to the graph below for details):

This increase in inventory is great news for your home search. If you haven't yet found a house that meets all your criteria, the expanding number of listings means you'll have more options to consider. This enhances your chances of finding a home that ticks all the boxes for what you need and want. As Ralph McLaughlin, Senior Economist at Realtor.com, points out:

“It could be a particularly good time to get out into the market . . . you're going to have more choice. And that's not something that buyers have really had much over the past several years.”

2. There Are More Newly Built Homes on the Market

According to data from the Census and the National Association of Realtors (NAR), approximately 31.1% of homes currently on the market are newly built. This proportion is higher than usual (as shown in the charts below). However, this increase in new construction isn't due to overbuilding. Rather, builders are working to catch up following several years of not building enough homes to meet demand.

And the best part is that builders have been focusing on constructing smaller homes at more affordable price points, which might mean that new builds are less expensive than you might expect. While many people tend to assume new construction comes with a high price tag, the current market conditions have narrowed the price gap significantly. As CNET notes:

“If you live in an area where there's a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you haven’t been able to find a home that’s in your budget, it’s time to ask your agent about new builds. If you don’t, you may have been cutting your pool of options by about a third.

Bottom Line

Having a wider range of options could be crucial to fulfilling your homebuying aspirations in 2025. If you're interested in exploring what's available in our area, don't hesitate to get in touch.

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