By Benson & Mangold Real Estate
When considering a move, it’s crucial to stay informed about the current state of the housing market. Here’s an update on the inventory of homes currently available for sale. Whether you’re in the market to buy or sell, keeping an eye on the number of homes in your area is essential.
In the real estate market, there are consistent patterns that occur annually, known as seasonality. Spring typically marks the peak homebuying season, with the highest number of homes listed for sale (referred to as new listings in the industry). In the latter part of each year, the volume of new listings usually decreases as sales activity slows down.
The graph below, utilizing data from Realtor.com, visually represents this seasonality and illustrates how this year (depicted by the black line) deviates from the norm:
Upon examining this graph, three key observations emerge:
The years 2017-2019 (represented by the blue and gray lines) follow the typical pattern, reflecting normal, seasonal trends in the housing market.
Starting in 2020, there is a departure from the normal trend. The significant drop in 2020 (shown by the orange line) corresponds to the onset of the pandemic, causing many sellers to put their moving plans on hold. While 2021 (green line) and 2022 (red line) exhibit a return to some normalcy, they still deviate from the usual trends in their own ways.
This year (depicted by the black line) is genuinely distinctive. The usual sharp decline in new listings at this time of year has not occurred. If 2023 followed the expected pattern, the line for this year would resemble the dotted black line. Instead, the number of new listings is stabilizing, and there are even more new listings entering the market compared to the same period last year.
What Does This Signify for You?
For buyers, the stabilization of new listings is a positive indicator. It means a more consistent flow of options entering the market, providing you with a broader range of choices for your next home compared to the same period last year. This increased availability opens up possibilities and enables you to explore various homes that meet your needs.
For sellers, although new listings are deviating from seasonal norms, inventory remains below pre-pandemic levels. Examining the graph again, you’ll notice that the black line for this year is still lower than usual, indicating that inventory is not experiencing a significant surge, and prices are not poised for a sharp decline. With less competition from other sellers compared to a more typical year, your house stands a better chance of standing out and attracting eager buyers.
Whether you’re actively searching for your next home or contemplating selling, the present moment could be an opportune time to make your move. If you have questions or concerns about the availability of homes in our local area, let's connect! I would be happy to share my thoughts and experiences with you as you navigate your next move.
Source: Keeping Current Matters
Talbot County, Maryland Real Estate