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If you’re thinking about purchasing a home, it’s important to know what’s happening in the market. Here’s an update on the supply of homes currently for sale. Whether you are buying or selling, the housing inventory in your area is something you should pay attention to.
In the housing market there is seasonality, regular patterns that happen every year. Spring is traditionally the peak homebuying season and also when we see the most inventory. The second half of the year, the number of new listings typically decreases as the pace of sales slows down. Here on the coast this trend can be seen in our local market.
The graph below uses data from Realtor.com to provide a visual of this seasonality. It shows how this year (black line) is breaking from the norm (see graph below):
Looking at this graph, three things become clear:
- 2017-2019 (the blue and gray lines) follow the same general pattern. These years were very typical in the housing market and their lines on the graph show normal, seasonal trends.
- Starting in 2020, the data broke from the normal trend. The big drop down in 2020 (the orange line) signals when the pandemic hit and many sellers paused their plans to move. 2021 (the green line) and 2022 (the red line) follow the normal trend a bit more, but still are abnormal in their own ways.
- This year (the black line) is truly unique. The steep drop off in new listings that usually occurs this time of year hasn’t happened. If 2023 followed the norm, the line representing this year would look more like the dotted black line. Instead, what’s happening is the number of new listings is stabilizing. And, there are even more new listings coming to the market this year compared to the same time last year.
What Does This Mean for You?
- For buyers, new listings stabilizing is a positive sign. It means you have a more steady stream of options coming onto the market and more choices for your next home than you would have at the same time last year. This opens up possibilities and allows you to explore a variety of homes that suit your needs.
- For sellers, while new listings are breaking seasonal norms, inventory is still well below where it was before the pandemic. If you look again at the graph, you’ll see the black line for this year is still lower than normal, meaning inventory isn’t going up dramatically and prices aren’t heading for a crash. And with less competition from other sellers than you’d see in a more typical year, your house has a better chance to be in the spotlight and attract eager buyers.
Bottom Line – If you have questions or concerns about the availability of homes in your local area, connect with our team.
Pierce & Susan Kaylor | Coldwell Banker Coastal Realty | Licensed in AL & FL | 251.269.5250
Information from Keeping Current Matters December 13, 2023
