If you’ve taken a step back from your home search in recent years, you’re not alone and you’re definitely not out of options. In fact, now might be the ideal time to take another look. With more homes to choose from, prices stabilizing in many areas and mortgage rates falling, today’s market offers something it hasn’t had in a long time: options. Experts agree that buyers are in a better situation now than they have been in a long time. This is what they have to say. Affordability is finally improving Lisa Sturtevant, chief economist at brilliant MLSSays affordability is finally starting to improve: “Slower price growth, coupled with a slight drop in mortgage rates, will improve affordability and create a window for some buyers to enter the market.” Mortgage rates have fallen from their recent highs, price growth has slowed, and that one-two punch is making homes more affordable than they have been in months. There are more houses on the market And one of the main reasons prices are dropping is because there are more homes on the market. According to the latest of real estate agent.comthere are 17% more homes on sale today than there were at this time last year. That means more options, less competition with other buyers, and the opportunity to find the space that really works for you. Lawrence Yun, chief economist at the National Association of Realtors (NAR), actions: “Home buyers are in the best position in more than five years to find the right home and negotiate a better price. Current inventory is at its highest level since May 2020, during the COVID shutdown.” Take a look at the numbers. As Yun points out, inventory has increased everywhere. Compared to this time last year, each region of the country has more homes on the market than at this time last year (see chart below): That translates to more homes to choose from, whether you’re looking for a bigger backyard, a shorter commute, or finally getting rid of your rental. But not all markets are the same… When you compare current inventory growth to pre-pandemic norms (2017-2019), the picture changes a bit, depending on where you are. (see chart below): The green bars show where inventory has fully recovered (and even grown above pre-pandemic levels) in the South and West. However, supply remains tighter in the Northeast and Midwest, as shown in the red bars, where inventory is still below normal. And here’s why it’s still a win everywhere. When you step back and look at the big picture, with inventory in all regions, that means more options everywhere, even if some areas have more homes for sale than others. And with fewer buyers in the market and more homes for sale, sellers are willing to negotiate to reach a deal. That all adds up to a win for today’s buyers. And that’s also why working with a local expert really makes a difference. What’s happening in your zip code or neighborhood may look different than the national or regional trend. But the general conclusion is clear: With more homes on the market, buyers have more influence than they did a year or more ago. So if you walked away from your search because things seemed too competitive, too expensive, you were worried about finding a home, or it was just too much to process, this might be your time to take another look. And if you’re not ready to go all out, that’s okay too. You can start by planning ahead. That means working with a trusted agent who can help you break down your budget, narrow your search, and make sure you’re prepared and ready when the right home comes on the market. Do you want to know what is happening in our area? Let’s have a conversation so you can get a personalized overview of what’s available right now and learn how to be ready when the time is right for you.
