"Housing inventory growth since 2022 has reduced upward pressure on prices and improved market choice for buyers. With wages rising 3.6% and home prices up 0.9% year over year, the data point to gradual affordability improvement despite rate volatility."
"More inventory means more choices, a better buyer's market, and less price growth all things the housing market needs to get healthy again. This is one variable that has helped housing demand hold up better this year even with mortgage rates rising due to the conflict with Iran."
"Housing inventory, while not back to the normal levels for NAR data (2-2.5 million) is up from the low of 860,000 to 1,470,000 today, with over 4 months of supply. The reason this is important is that, even though existing home sales didn't go anywhere and mortgage rates rose from 6% to 8% in 2023, home prices still rose by nearly 6% that year."
"we can't replicate that home-price growth in 2026 with rates near 6% because inventory is up. Another plus: we are getting more sellers in 2025 and 2026 than in 2023 and 2024, as our new listings data is trying to return to normal levels, which means between 80,000 and 100,000 new listings per week during the seasonal peak period."
Housing inventory has grown since the 2022 lows, increasing buyer choice and easing upward pressure on prices. Rising wages of 3.6% and home prices up 0.9% year over year indicate gradual affordability improvement even with mortgage-rate volatility. Inventory increased from about 860,000 to about 1,470,000 units, reaching over four months of supply, though it remains below typical NAR levels of 2.0 to 2.5 million. With inventory higher, price growth is less likely to replicate the strong gains seen in 2023 when rates rose and existing home sales stayed flat. New listings are also expected to return toward normal levels in 2025 and 2026, supporting a healthier market balance.
Read at www.housingwire.com
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