Whether you’re considering a move or just staying informed about the housing market, understanding the current supply of homes for sale is crucial. Here’s an update on a notable trend in the number of homes coming onto the market in 2023, providing valuable insights for both buyers and sellers.
Unveiling Seasonal Patterns
In the housing market, there are recurring patterns known as seasonality. Spring typically marks the peak homebuying season, accompanied by the highest number of homes listed for sale (referred to as new listings). Conversely, the second half of the year often witnesses a decline in new listings as the pace of sales moderates.
The graph below, utilizing data from Realtor.com, illustrates this seasonality and the deviation from typical trends:
Examining this graph reveals three key observations:
- 2017-2019: The blue and gray lines represent these years, showcasing the conventional seasonal trends in the housing market.
- 2020: The orange line indicates a significant deviation caused by the pandemic, with a sharp drop in new listings as sellers paused their moving plans.
- 2021 and 2022: The green and red lines, while following a more normal trend, still exhibit abnormalities.
The Unique Trend of 2023
In 2023 (the black line), a truly distinctive pattern emerges. Instead of the anticipated steep decline in new listings during this time of the year, the trend stabilizes. Surprisingly, there are even more new listings entering the market this year compared to the same period last year.
Implications for Buyers and Sellers
For Buyers:
- Stabilizing New Listings: A positive sign for buyers as the stabilization of new listings provides a more consistent stream of options, offering increased choices for their next home compared to the same period last year.
For Sellers:
- Breaking Seasonal Norms: While new listings are deviating from seasonal norms, overall inventory remains below pre-pandemic levels. The black line indicates that inventory isn’t surging dramatically, suggesting prices are not heading for a crash. With less competition, sellers have a better chance of spotlighting their homes and attracting eager buyers.
Bottom Line
Whether you’re in the market for a new home or contemplating selling, the current trend in new listings presents an opportune moment to make your move. If you have questions or concerns about home availability in your local area, connecting with a real estate agent can provide valuable guidance tailored to your specific situation.
