The Number of Homes Coming onto the Market is a Surprising Trend

No matter if you are looking into buying a home or selling your home, it is important to pay attention to the number of homes available in your area. Keeping up with what is going on in the housing market can really help with important real estate decisions.

Each year, the housing market goes through regular patterns known as seasonality. Springtime is peak homebuying season as it is when most homes are typically listed for sale. On the flip side, the second half of the year commonly sees a decrease in the number of listings as the pace of sales slows down.

The graph below provides a visual representation of this seasonality and shows how this year (the black line) is breaking from the norm. The data comes from Realtor.com.

After studying the graph, three things should become clear.

  1. 2017 to 2019 follow the same general pattern (the gray and blue lines). These years were very typical in the housing market and their lines on the graph display the normal, seasonal trends.
  2. Starting in 2020, the data broke from the normal trend. This should not be surprising as this was the year of the pandemic. The big drop down (for the orange line) signals when the pandemic hit and shows that many sellers paused their plans to move. Then, in 2021 (the green line) and 2022 (the red line), things begin to get back to normal, but are still abnormal in their own ways.
  3. 2023 really is very unique (the black line). The steep drop-off in new listings that typically occurs during the end of the year has not happened. If 2023 were to follow the normal trends, the line representing the year would look more like the dotted black line. Instead, what is happening is that the number of new listings is stabilizing. Plus, there are even more new listings coming on to the market at this time than the previous years.

What Does this Trend Mean for You?

For Buyers: The fact that the new listings are stabilizing is a positive sign. This means that you have a steadier stream of options to choose from in comparison to past years. This provides opportunities that you otherwise may not have had and allows you to explore a larger variety of homes that fit your requirements.

For Sellers: Even though new listings are breaking seasonal norms, the overall inventory is still far below where it was before the pandemic. This means that the inventory is not going up as dramatically and prices aren’t heading for a crash. In conclusion, with less competition from other sellers your house has a better chance to be seen by eager buyers.

Final Thoughts

Whether you are considering selling your home or if you are on the hunt for your next home, now is a great time to make your move. Contact real estate expert Dianne Anderson today if you have any questions or concerns about the availability in Southwest Florida.

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