More Homes, Slower Price Growth – What It Means for Buyers

Some good news! There are more homes on the market right now than there has been for years, which is light at the end of the tunnel for today’s buyers for two reasons.  

You Have Options!

According to Realtor.com:

“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 we are not at the numbers we were at before the pandemic, it’s great to see this improvement for buyers and our market. With the inventory increasing, you have more opportunities as a buyer to find the best fit home for your needs while avoiding rushing the buyer process due to decreased competition from other buyers. 

Home Price Growth Is Moderating

The cost of a home in today’s market has been the talk of many conversations—they aren’t cheap. With the lack of inventory over the past few years, buyers had to compete for the few available homes and with this drove a spike in prices. It’s simple supply and demand, as more homes become available, the price growth will slow down. In some areas that have surpassed pre-pandemic levels, price growth has stopped completely.

Slower price growth of course allows a better chance of finding a home that fits your needs within your budget, it also could allow for many renters to have hope for the future to be able to purchase their own home, and begin their buyer journey. 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.”

KEEP IN MIND, inventory levels and home prices are going to vary by market.

With interest rates still not budging much at all and inflation still remaining high, I think we all know we are living in a somewhat unpredictable market. It is so important to work with a local and professional in the industry, like Jim Slater, who is studying and predicting the market every day to help create best results for your home buying or selling experience. Not all locations are going to have the same inventory growth or price decline, and if you are looking to make a move now, don’t try it alone. 

Bottom Line

Increasing inventory and slow to stalled price growth is a great sign for buyers. Please don’t hesitate to call Jim Slater today at 612-590-1802 to discuss the market currently and what to expect for the future, and to begin searching for your new home. 

Sooner or later, you’ll call Jim Slater!

Source

Coldwell Banker Realty