Seller's Delight: The Current State of Housing Inventory

Lisa Mailhot  |  July 6, 2023

Buyers

Seller's Delight: The Current State of Housing Inventory

A couple prepares vegetables together at a bright kitchen island with large windows.

 

The current housing market poses a significant challenge due to the limited availability of homes for sale in comparison to the high demand from prospective buyers. To underscore the scarcity of housing inventory, let's examine the latest data on active listings, which represent homes available for sale during a specific month, and compare it to levels considered more typical.

Based on a recent report by Realtor.com,

“On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”

This disparity can be better visualized in the graph below, which employs historical data to demonstrate the considerable lag in inventory compared to a more customary market:

Housing inventory chart with a rising red line and blue bars across labeled years.

Please note that the graph excludes the years 2020-2022 as they were extraordinary for the housing market. Their omission ensures a fair comparison that avoids distorting the data.

By comparing the orange bars representing 2023 with the housing market's last normal years (2017-2019), it becomes evident that the number of active listings remains significantly below the average.

What Does This Mean for You? 

If you're contemplating selling your house, the scarcity of inventory presents a favorable opportunity. With fewer options available to buyers now compared to more typical years, this scarcity continues to impact key indicators in the housing market. For instance, the latest Confidence Index from the National Association of Realtors (NAR) reveals some positive statistics that sellers will appreciate:

  • The percentage of homes sold in less than a month slightly increased to 74%.
  • The median days on the market decreased to 18 days, indicating that appropriately priced homes are still selling quickly.
  • The average number of offers on recently sold homes rose to 3.3 offers.

Bottom Line

When supply is limited, your house gains greater visibility. Consequently, sellers are experiencing faster sales and an increase in offers. If you have considered selling, now is an opportune time to take action. Let's connect and initiate the process.

 

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