Housing inventory is finally climbing, but if you’re expecting prices to drop, you might be in for a surprise. Traditionally, more homes on the market mean more competition for sellers, which drives prices down. But today’s housing market isn’t following the usual rules.
Let’s break down why.
Pent-Up Demand Is Driving Prices
Even with mortgage rates hovering around 6.8%, buyers are re-entering the market. Many have been waiting on the sidelines since the pandemic, hoping for a break. The moment they see a slight dip in rates or more homes become available, they’re ready to jump. That surge of demand keeps prices from falling.
A Strong Economy Gives Buyers More Power
According to the National Association of Realtors, positive economic indicators are giving buyers stronger purchasing power. When buyers feel confident, they’re willing to pay more for the homes that meet their needs, even in a market with rising supply.
Sellers Still Have Leverage
Yes, the market is shifting, and sellers don’t hold quite as much power as they did in the frenzy of the last few years. But don’t mistake that for weakness. With about a 4.6-month supply of inventory nationwide (still below pre-pandemic levels), well-priced homes in desirable areas are moving quickly, sometimes within days.
The Bottom Line
More inventory doesn’t mean less demand. It means more opportunity. Buyers who wait may find themselves paying more later, while sellers who act now can still take advantage of a competitive market.
If you’re asking yourself whether you’ll miss it or move, now is the time to make a smart decision.