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

Right now, there are more homes available on the market than we've seen in years—and that could make a big difference if you’re ready to buy. Here are two key reasons why.

You Have More Options To Choose From

According to a recent Realtor.com article, the number of homes for sale has increased significantly 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 inventory levels haven’t fully returned to pre-pandemic levels, the increase in available homes is certainly a step in the right direction. (see graph below):

With the rise in inventory, buyers now have a broader selection, allowing for greater flexibility to find a home that meets their needs, says Hannah Jones, Senior Economic Research Analyst at Realtor.com:

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

This gives you a stronger chance of finding a home that truly fits your needs. Plus, with more choices available, the buying process may feel less pressured, as increased inventory often means less competition from other buyers.

Home Price Growth Is Slowing

When inventory is low, buyers often face intense competition for the limited homes available, which was a key factor in driving prices up quickly in recent years. However, with more homes now entering the market, price growth is starting to moderate. (see graph below):

In some areas, the housing supply has not only returned to typical levels but even exceeds what we saw before the pandemic. This increase in available homes is leading to a noticeable slowdown, and in some cases, a complete pause in price growth.

“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.”

A slowdown or pause in price growth can open up more affordable options, increasing the likelihood of finding a home within your budget. Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), notes that:

“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.

That’s why working with a real estate agent familiar with your local market is such a valuable asset. Their insights into neighborhood trends can make all the difference in finding a home that aligns with both your needs and budget.

Bottom Line

With more homes available and a slower pace of price growth, you have a greater opportunity to find a home that suits your lifestyle and budget. Don’t hesitate to reach out if you’re interested in exploring the options currently available to you.