More Homes, Slower Price Growth – What It Means for You as a Buyer

<article class="post-1267074 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1267074"><span class="entry-date">November 13, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">More Homes, Slower Price Growth – What It Means for You as a Buyer</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=More+Homes%2C+Slower+Price+Growth+%E2%80%93+What+It+Means+for+You+as+a+Buyer&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fmore-homes-slower-price-growth-what-it-means-for-you-as-a-buyer%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="More Homes, Slower Price Growth – What It Means for You as a Buyer Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241112/20241113-More-Homes-Slower-Price-Growth-What-It-Means-for-You-as-a-Buyer-original.png" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>There are more homes on the market right now than there have been in years – and that could be a game changer for you if you’re ready to buy. Let’s look at two reasons why.</p>
<h4><strong>You Have More Options To Choose From</strong></h4>
<p>An <a href="https://www.realtor.com/research/october-2024-data/" rel="noopener noreferrer" target="_blank">article</a> from <em>Realtor.com </em>helps explain just how much the number of homes for sale has gone up this year:</p>
<blockquote><p><em>“There were </em><strong><em>29.2% more homes actively for sale on a typical day in October compared with the same time in 2023</em></strong><em>, marking the twelfth consecutive month of annual inventory growth and </em><strong><em>the highest count since December 2019</em></strong><em>.”</em></p></blockquote>
<p>And while the number of homes on the market still isn’t quite back to where it was in the years leading up to the pandemic, this is definitely an <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">improvement</a> (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241112/20241113-The-Number-of-Homes-for-Sale-Is-on-the-Rise-original.png" rel="noopener noreferrer" target="_blank"><img alt="a graph of a number of homes" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241112/20241113-The-Number-of-Homes-for-Sale-Is-on-the-Rise-original.png"/></a>With more homes available for sale now, you have more options to choose from. As Hannah Jones, Senior Economic Research Analyst at <em>Realtor.com</em>, <a href="https://themortgagereports.com/115086/first-time-home-buyer-advice-q4-2024" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“Though still lower than pre-pandemic, </em><strong><em>burgeoning home supply means buyers have more options . . .</em></strong><em>”</em></p></blockquote>
<p>That means you have a better chance of finding a house that meets your needs. It also means the <a href="https://www.simplifyingthemarket.com/2024/10/25/debunking-scary-myths-about-buying-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buying process</a> doesn’t have to feel quite as rushed, because more options on the market means you’ll likely face less competition from other buyers.</p>
<h4><strong>Home Price Growth Is Slowing</strong></h4>
<p>When there aren’t many homes for sale, buyers have to compete more fiercely for the ones that are available. That’s what happened a few years ago, and it’s what drove prices up so quickly.</p>
<p>But now, the increasing number of homes on the market is causing home price growth to <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-20-city-composite-home-price-nsa-index/#news-research" rel="noopener noreferrer" target="_blank">slow down</a> (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241112/20241113-Home-Price-Growth-Is-Moderating-original.png" rel="noopener noreferrer" target="_blank"><img alt="a graph of green and blue lines" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241112/20241113-Home-Price-Growth-Is-Moderating-original.png"/></a>In certain markets, the number of available homes has not only bounced back to normal, but has even surpassed pre-pandemic levels. In those areas, home price growth has slowed or stalled completely. As Lance Lambert, Co-Founder of <em>ResiClub</em>, <a href="https://www.resiclubanalytics.com/p/the-key-housing-market-metric-heading-into-2025" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”</em></p></blockquote>
<p>Slower or stalled price growth could give you a better chance of <a href="https://www.simplifyingthemarket.com/2024/10/17/why-did-more-people-decide-to-sell-their-homes-recently/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">finding something</a> within your budget. As Dr. Anju Vajja, Deputy Director at the <em>Federal Housing Finance Agency</em> (FHFA), <a href="https://www.fhfa.gov/sites/default/files/2024-09/FHFA-HPI-Monthly_09242024.pdf" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“For the third consecutive month U.S. house prices showed little movement . . . </em><strong><em>relatively flat house prices may improve housing affordability.</em></strong><em>”</em></p></blockquote>
<p><strong>But remember, inventory levels and home prices are going to vary by market.</strong></p>
<p>So, having a real estate agent who knows the local area can be a big advantage. They can help you understand the trends in your community, which can make a real difference in finding a home that fits your needs and budget.</p>
<h3>Bottom Line</h3>
<p><a href="https://www.simplifyingthemarket.com/2024/10/14/why-a-condo-could-be-your-perfect-first-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">More housing options</a> – and the slower home price growth they bring – can help you find and buy a home that works for your lifestyle and budget. So don’t hesitate to reach out to a local <a href="https://www.simplifyingthemarket.com/2024/10/31/how-real-estate-agents-take-the-fear-out-of-moving/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a> if you want to talk about the growing number of choices you have right now.</p>
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