Key Takeaways:
- The ongoing inventory shortage is largely to blame for 2021’s double-digit price appreciation.
- Traditionally, we see fewer homes for sale in the second half of the year—but after a two-year drought, more listings are finally starting to hit the market.
- Have questions about the latest market stats? Contact Linda Craft & Team at 919-235-0007 to plan your move in the Triangle.
Here’s Why We’re Seeing More Homes for Sale After Two Years of Low Inventory
When experts measure how the real estate market is doing, they often look at the total number of homes for sale. And for the last two years, that number has continued to dwindle—which is why we’ve seen such astronomical price increases. However, if you’re a buyer frustrated by bidding wars and limited options, we finally have some good news for you!
According to data from Realtor.com, inventory has steadily increased over the last few months, and it could continue going up throughout 2022. Here’s everything you need to know as a Raleigh area buyer or seller.
Normally, the number of homes for sale decreases during fall and winter
Historically, housing inventory increases throughout the summer months, starts to tail off in the fall, and then drops significantly over the winter. The graph below shows this trend along with how the monthly active listings peaked in 2017, 2018, and 2019.
However, COVID-19 threw the traditional inventory cycle off and made homeowners apprehensive. Historic seasonality hasn’t been the same since 2020—in fact, inventory actually reached its peak in April of last year. Since then, active listings fell off dramatically and haven’t recovered since.
This year, we’re finally making some progress
Due to the decline of active listings in 2020, 2021 began with record-low housing inventory counts. This once-in-a-lifetime market shift led to unheard of price increases, as well as bidding wars with dozens of offers. But over the last few months, we’ve seen more listings hit the market—and that’s fantastic news for prospective buyers.
This inventory increase can be attributed to a number of factors as we head into winter. Here are a few key catalysts to consider.
- Pent-up seller demand: Homeowners are now more comfortable putting their properties on the market as vaccination rates increase.
- More new construction homes: As more new homes are built, homebuyers will have additional options from which to choose.
- The end of forbearance: Although the federal forbearance program is set to end soon, most homeowners won’t face foreclosure thanks to their equity. Many will instead choose to list their homes and cash out.
What does this mean for buyers and sellers?
Unsurprisingly, this spike in new inventory should have long-fatigued buyers jumping for joy. As additional homes become available, expect to see prices increase at a slower rate or even plateau over time. It’s also a good idea to consider other options, such as new construction.
Thinking about selling a home in the Triangle? We can’t say this enough—list your home as soon as possible to take advantage of today’s record-high prices. If you wait any longer, you could have to compete with other homes on the market, and you might not be in the driver’s seat during negotiations. Most real estate experts predict that waiving contingencies and competitive bidding wars won’t last much longer, so now is the time to get top dollar!
Work with the Triangle’s Top Agents
If you’re thinking about moving within the Raleigh area, don’t settle for second best. Linda Craft & Team has the experience you need to navigate today’s challenging market. Whether you’re buying or selling, you can trust our centuries of combined expertise. Give us a call at 919-235-0007, or send over your address to see how much your home is worth.