The past few years have been tough for homebuyers, with rising home prices and mortgage rates making the process even more challenging. If you’re in the market for a home, it’s natural to worry about finding something within your budget.
However, there’s some good news. The inventory of homes for sale has increased significantly, including both existing (previously owned) homes and newly built ones. Here’s a look at these two positive trends and how they could make it easier to find the home you’ve been searching for.
1. There Are 22% More Existing Homes for Sale
According to data from Realtor.com, the supply of existing homes for sale saw a remarkable 22% increase in 2024. Experts predict this trend will continue, with inventory expected to grow another 11-15% by the end of the year (see graph below).
Here’s why this is great news for your home search. If you haven’t found a home that meets all your needs, the increasing number of listings means more options to choose from. This improves your chances of finding a home that checks all your boxes. As Ralph McLaughlin, Senior Economist at Realtor.com, explains:
“It could be a particularly good time to get out into the market . . . you’re going to have more choice. And that’s not something that buyers have really had much over the past several years.”
2. There Are More Newly Built Homes on the Market
Data from the Census and the National Association of Realtors (NAR) shows that newly built homes make up 31.1% of the current housing market—about 1 in 3 homes for sale. This is higher than usual (see charts below). However, this isn’t due to overbuilding; rather, builders are working to make up for years of underproduction.
The best part? Builders have been focusing on smaller, more affordable homes, meaning new construction might be less expensive than you’d expect. Many people assume new builds are out of their price range, but recently, the price gap between new and existing homes hasn’t been as large as you might think. As CNET explains:
“If you live in an area where there’s a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”
If you’ve been struggling to find a home within your budget, it’s worth asking your agent about new construction. Otherwise, you could be overlooking nearly a third of the available market.
Bottom Line
Having more options could be the key to achieving your homebuying goals in 2025. Get in touch with us to explore the homes available in our area!
