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Housing Supply Is Rising. What Does That Mean for You?

The number of homes for sale is a vital factor in today’s real estate market. While the inventory levels are still near historic lows, there are indications that we may have hit the lowest point and we’ll see a gradual increase moving forward. Odeta Kushi, Deputy Chief Economist at First American, recently said of our supply challenges:

It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.

To put it into perspective, the graph below shows levels of inventory rising since the beginning of the year:

Housing Supply Is Rising. What Does That Mean for You? | MyKCM

We’re still not in a balanced market, which would be a 6 month supply of homes for sale. However, we’re seeing a gradual increase in homes coming up for sale. That leaves many buyers and sellers thinking the same thing: what does this mean for me?

Buyers: More Options Are Arriving, so It’s Time To Act

As a buyer, knowing that more inventory coming to the market is a welcoming sight. More supply means more options and significantly less competition, which could mean fewer bidding wars which saves you a great amount.

According to the latest Monthly Housing Market Trends Report, supply levels are continuing to increase, which is different from the typical summer market:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.

This gives hope to people who are in the market for their next home and will give them the motivation to keep the buying process moving forward. Experts project that mortgage rates will begin to increase, which will make purchasing a home much less affordable as time passes. You can still take advantage of today’s low interest rates, so stick with your search as more homes come to market.

Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell

Now is the perfect time to sell. If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have surely helped buyers, but we’re still very much in a seller’s market.

Housing Supply Is Rising. What Does That Mean for You? | MyKCM

As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically: Of course, more homes are coming to market now, and more are expected in the coming months. Selling your house this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.


More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move.

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