There’s a lot of talk lately about how challenging it can be
to find a home to buy. While housing inventory is still low, there are a few
important things to understand about the supply of homes for sale as we move
into the end of the year.
The Number of Homes for Sale Usually Peaks in the Fall
In the residential real estate market, trends generally
follow a predictable and seasonal pattern. Typically, the number of homes
available for sale (or active monthly listings) peaks in the fall. But in a
chapter where so little feels normal, the question becomes: should we expect a
fall peak this year?
If we look at the active monthly listings for 2021 (shown in
the chart below), we’ll see that the number of homes on the market has
increased fairly steadily since spring this year. The realtor.com data shows
we’re still seeing an increase in active inventory month-over-month. While that
gain is a bit smaller month-to-month (see August to September in the chart),
September numbers are still up from the month prior.
The important takeaway here is the latest monthly numbers
show growth. At the end of September, buyers had more options to pick from than
they did this spring. That’s encouraging for buyers who may have paused their
search months ago because they had trouble finding a home. Danielle Hale, Chief
Economist at realtor.com, sums this up nicely:
“Put simply, this September buyers had more options than
they’ve had all year and while that’s typical of early fall, that’s not what
happened in 2020. Still, it’s important to remember that while buyers may have
an easier time this fall than they did in the spring, the market remains more
competitive than it has been historically at this time of year.”
As Hale says, a fall peak in inventory is in line with
typical seasonal trends. While it’s impossible to say for certain what the
future holds for housing inventory, we do know both buyers and sellers have
opportunities this season based on the latest data.
What Does That Mean for You?
If you’re thinking of buying a home, rest assured you do
have more options now than you did earlier this year – and that’s a welcome
relief. That said, today’s market is still highly competitive. This isn’t the time
to slow your search. It’s actually the season when the number of homes
available for sale tends to peak. Focus on the additional options with renewed
energy this season and be prepared for ongoing competition from other buyers.
If you’re considering selling your house, realize that while
growing, inventory is still low. Selling now means you’ll be in a great
position to negotiate with buyers – and competition among buyers is good news
for your bottom line. Eager buyers will likely be motivated to act before the
holidays, giving you the benefit of a fast sale.
Whether you’re buying or selling, there’s still a chance to
make your goals a reality this season. Let’s connect so we can discuss what’s
going on with the local market and current trends and what they mean for you.
Source: Real state with Keeping Current Matters