Housing inventory is up, so why are home prices continuing to rise nationally even though there is more supply? It might sound backward: More homes on the market mean more competition for sellers and lower prices, right? That’s normally true… so let’s talk about it!
Hi, I’m Terry Tucker with eXp Realty and I help people sell and buy homes right here in the San Francisco Bay Area!
In today’s market, even though we are seeing a correction in many areas, there are other powerful factors that are keeping prices up and preventing a market crash.
First, there is still pent-up buyer demand stemming from the pandemic. Even with rates around 6.75% buyers are re-entering the market. They have been waiting on the sidelines for a long time, and as soon as they see even a small drop in interest rates or an increase in inventory, they pounce.
This demand keeps prices up. Even in areas where cracks are showing… this still keeps prices from coming down a lot and crashing. However, every city and neighborhood are different- so it’s really important to get the market stats in your desired locations.
Another factor is that the economy was *appearing* to be fine. According to the National Association of Realtors, strong economic indicators mean buyers have more financial power and they are willing to pay more for homes that check all their boxes.
But sellers don’t despair, recent data still shows sellers have power, just far less than before. Yes, there has been a shift, but the market is normalizing after a wild last couple of years. Inventory is up, but we are still not at pre-pandemic inventory levels. Much of the inventory is concentrated in specific regions like the West Coast and the South. Nationally, we are at a 4.6-month supply of inventory… which is getting close to what’s considered a balanced market. BUT It’s also worth saying that in today’s market, your home’s condition and marketing are MORE IMPORTANT than ever!
Bottom line, More inventory doesn’t mean weak demand. It means opportunity, but it’s still a competition. The homes that have the best strategic positioning are moving really fast, and the longer you wait, the more you’ll pay.
Call me! If you would like more information on the current housing market.
Whether you are buying, selling, or just trying to make sense of it all, you need an experienced agent by your side to help navigate this market. With 10 years of experience as a Realtor, over 50 years of personal family real estate history, a Master’s Degree in Science, and a 5-star rating… I help you win. No matter what the market is doing! Call me today and let’s talk about it! I’m Terry and I sell homes. I’m a seasoned 5 star expert and I’d love to get you started on your real estate journey.
