A very large factor in today’s highly competitive seller’s market is the number of homes available for sale. The historically large shortage of available homes for sale is a major contributing factor to the price appreciation of real estate across the country over the last two years. High price increases are a large contributing factor to potential buyer frustration with bidding wars on homes for sale, but a slight sign of relief may be finally coming to the real estate market.
Data from realtor.com shows their active listings have increased over the last four months. A statement from realtor.com reveals that their active listing count tracks the number of properties for sale in the market. This excludes pending listings where a pending status has been put on a home. It is a small glimpse of how many active listings can be expected on any given day for a specific month.
For many years there has been a traditional ebb and flow to how many homes are on the market at a certain time in the year. Historically housing inventory automatically increases in the traditional peak season of spring and summer and then drops off as fall begins and drops even lower into the winter. Last year the insanely low housing inventory and the very large amount of buyers interested in taking advantage of amazing mortgage rates caused this to look different. This is partially due to many sellers waiting to put their homes on the market because of safety measures with the pandemic. In the year 2020 active listings peaked in April and then dramatically fell off as the year progressed instead of waiting until September or October to slowly decrease.
Data has shown that though there was a very large decrease in the number of homes for sale beginning in April of last year that there was a slight increase in inventory beginning in June 2021.
The number of homes available for sale is expected to continue to increase into the fall. This could be for several reasons; the top three speculations include:
Homeowners are more comfortable opening their homes for buyers to look at: as more and more things open up and we become more and more knowledgeable about potential Covid treatments homeowners may be becoming more comfortable and putting their homes for sale and allowing buyers to come inside and take a look.
New construction homes are being built in larger numbers again: new construction homes are not included in the realtor.com numbers, but as more new homes are being built there will of course be more options for home buyers to consider.
One reluctance of homeowners listing their home has been the ability to find a new home without a huge waiting period and a large amount of stress that current buyers were facing. A higher inventory helps eliminate the fear of not being able to find a new one after the old one sells.
Forbearance ending and creating new home listings: as forbearance programs end, it could lead some homeowners to list their home on the market and use the equity to make payments they have delayed over the pandemic.
The bottom line is that there are more and more new listings becoming available especially recently. If you were thinking of purchasing a home it is looking more and more promising. If you are thinking of selling, right now could be a great time to list while there is still a little bit of additional competition.
For more information on purchasing a home in Saint George and surrounding areas please contact me anytime.
Additional Resources for Home Buyers
- 5 Luxury Features the WOW Buyers
- Can a HELOC Be Used for Home Improvements?
- 4 Outdoor Amenities to Have in a Luxury Home
- Tips for Buying a Home Out of State
- Surprising Things a Homeowners Association Can Ban
- Is it Safe to Offer Below Asking Price?
- What Type of Homes Are Young Professionals Buying?
- What real estate agents want you to know