According to Realtor.comwas the number of homes for sale in January highest it has been since 2020. Here’s why that’s so important. Returning to pre-pandemic levels signals a slow and steady return to what is typical:
It’s worth noting that we’re not there yet nationally – and improving inventory won’t suddenly “fix” the market. But the growth we’ve seen lately is still changing how competitive the market feels.
- If there are more homes for sale, buyers gain time, options and influence.
- When there aren’t anythe pressure increases quickly.
In the years since 2020, there have been too few homes for sale, which has made the market feel different. Hurried. Stressful. Intimidating.
But now things are finally getting better.
An increasing part of the country is returning to normal
Depending on where you live, inventory growth will vary. In some places the situation is recovering faster than in others. According to Lance Lambert, co-founder of ResiClubin January 2025, just over a year ago 41 of the 200 largest metros were back to normal in terms of inventory.
But around the end of the year, almost half (90) of the 200 largest metropolises were back at or above typical levels. That’s a big improvement in about a year. And it’s not done yet.
The stock is expected to continue growing
Looking ahead, predictions suggest that the number of homes for sale could increase this year another 10%meaning even more markets should join the list of places where supply has been restored.
Here’s a chart showing what an extra 10% would do for the market this year. You can see that the expected growth (shown in the dotted line) will reach 2017-2019 inventory levels approximately this fall (the gray lines). That means that by the end of the year we can achieve normal nationally:
And that will change your home search in a good way. Like Hannah Jones, Senior Economic Research Analyst at Realtor.com, put it:
“…housing market conditions are gradually returning to equilibrium after several years of extreme seller advantage. Buyers are starting to see more options and modest bargaining power as inventory improves. . .”
In other words, the market is starting to work of buyers again – not in return for them.
In short
The stock is not completely normal everywhere. But things are going in the right direction. And in some areas it is already there.
If you’ve been waiting for a moment where you have options and a little breathing room, this is the strongest setup buyer you’ve seen in a long time.
If you want to know what’s happening in your local market, contact an agent.
#Stock #comeback