Inventory growth in housing signifies a positive transition towards a normal market. The latest inventory data showed a slight increase last week, yet typical patterns suggest such fluctuations are normal. The peak for new listings in 2025 occurred in late May, showing significant improvement compared to the lowest years recorded in 2023 and 2024. Price cuts are more prevalent as sellers adapt their pricing strategies to higher inventory levels and mortgage rates, influencing overall market conditions and home price forecasts for 2025.
Inventory growth has been the best story in housing as we transition from an unhealthy housing market to a normal one. Inventory rose from 856,751 to 860,426 last week, showing a slowdown from previous growth rates.
Despite last week's slight decline in existing home sales inventory, typical seasonal peaks in data indicate this isn't unexpected. Weekly data suggests a manageable growth.
The peak week for new listings in 2025 was May 23, achieving 83,143 listings, a notable increase compared to the lower levels in 2023 and 2024.
Adjustments in sale prices due to rising inventory and elevated mortgage rates have led to a higher percentage of price cuts this year, affecting overall market dynamics.
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