The Unexpected Pattern in the Quantity of Homes Entering the Market
Considering a relocation? Staying informed about the current real estate landscape is crucial. This update delves into the present supply of homes available for purchase. Whether you're in the market to buy or sell, keeping an eye on the number of homes in your vicinity is essential.
Within the housing market, there are recurring annual patterns known as seasonality. Spring typically marks the pinnacle of homebuying activity, with a surge in new listings. Conversely, the latter part of the year sees a decline in new listings as the pace of sales moderates.
The accompanying graph utilizes data from Realtor.com, and visually illustrates this seasonality. Notably, this year (represented by the black line) diverges from the established norm (see graph below):
Looking at the graph above, three things become clear:
- From 2017 to 2019 (depicted by the blue and gray lines), a consistent pattern is observed, aligning with typical seasonal trends.
- In 2020 (depicted by the orange line), a substantial drop occurred, coinciding with the onset of the pandemic and the subsequent pause in many sellers' relocation plans.
- While 2021 (green line) and 2022 (red line) show a return to more typical trends, they still deviate from the pre-2020 norms.
The current year (black line) stands out as truly unique. The anticipated steep decline in new listings, typical at this time of year, has not materialized. Instead, the number of new listings is stabilizing, surpassing the previous year's figures.
What Does This Mean For You
For buyers, the stabilization of new listings is a positive indicator. It implies a consistent flow of options entering the market, providing a broader array of choices for your next home compared to the same period last year.
For sellers, although new listings defy seasonal norms, overall inventory remains below pre-pandemic levels. The black line on the graph indicates that this year's inventory is still lower than usual. This suggests that inventory isn't experiencing a significant increase, mitigating the likelihood of a market crash. With less competition compared to a more typical year, your property stands a better chance of attracting enthusiastic buyers and taking center stage in the market.
In summary, whether you're in search of your future home or contemplating selling, the current conditions suggest that this could be an opportune moment to take action. If you have inquiries or uncertainties regarding the housing availability in your local area, consider reaching out to us for guidance and assistance.