Market Data + Trends

Homebuyers to See Less Competition as Inventory Increases

Although home prices remain high, added inventory could offer some reprieve for buyers in 2025
Jan. 22, 2025

Homebuyers can expect less competition this year as housing inventory gradually returns to pre-pandemic levels. In December, nearly 1 million homes were on the market nationwide, the highest for any December since 2019, according to recent data from real estate marketing platform Zillow. While inventory remains 25% below levels seen in 2018 and 2019, it has improved significantly from the 37% deficit recorded in January 2024 and the 51% deficit in February 2022. This increase in available homes suggests that price growth may slow down in the near future.

Now, 10 of the 50 largest major metros have more homes on the market than at this time of year before the pandemic. Those metros are concentrated in Florida, Texas and the South, where builders have been better able to keep up with demand, though Denver is in the mix, too.

With any luck, the recent momentum of sellers returning to the housing market — some likely doubting that mortgage rates will drop anytime soon to improve their own buying situation — will continue to recover in the new year. That should give buyers a bit of breathing room in terms of competition and negotiating power. Read more

 

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