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

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

Currently, there are more homes available on the market than we've seen in years—this could be a game changer if you're prepared to buy. Here are two key reasons why.

You Have More Options To Choose From

An article from Realtor.com outlines how much the inventory of homes for sale has risen this year.

“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.”

Although the number of homes on the market hasn’t fully returned to pre-pandemic levels, this is certainly an improvement (see graph below):

With a greater number of homes now on the market, you have more choices available. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains:

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

This gives you a better chance of finding a home that fits your needs. It also means the buying process can feel less rushed, as more options on the market likely reduce competition from other buyers.

Home Price Growth Is Slowing

When housing inventory is low, buyers face intense competition for the available homes. This was the case a few years back, which led to a rapid rise in prices.

However, with more homes now on the market, the pace of home price growth is beginning to slow (see graph below):

In some markets, the supply of available homes has not only returned to normal but has even exceeded pre-pandemic levels. In these areas, home price growth has slowed or even come to a halt. As Lance Lambert, Co-Founder of ResiClub, explains:

“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.”

Slower or stalled price growth might improve your chances of finding something within your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), says:

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

But remember, inventory levels and home prices are going to vary by market.

Having a real estate agent with local expertise can be a significant asset. They can provide insights into community trends, which can greatly assist you in finding a home that aligns with your needs and budget.

Bottom Line

A larger selection of homes—and the slower price growth that comes with it—can make it easier to find a property that suits your lifestyle and budget. Don’t hesitate to reach out if you’d like to discuss the expanding options available to you.