With U.S. housing inventory reaching a new high, find out how it’s reshaping demand, prices, and local market opportunities for buyers and sellers.
There are now over one million homes listed for sale in the United States, marking the highest level of inventory since May 2020. However, when we look at inventory relative to buyer demand, the current market shows more listings available than at any point in the last decade. Let me break it down:
A steady market. The overall number of listings is still lower than it was between 2015 and 2020. Locally in Iowa, the MLS currently shows 3,901 active listings. This number reflects a steady market. It is not unusually high or low. It simply means there are homes available for buyers to see and consider.
In 2007 and 2008, there were about 6,000 to 6,500 homes listed in Des Moines. Today’s numbers are still below that. However, when compared to current demand, today’s inventory is significantly higher. Some cities across the country are beginning to see prices soften. Locally, certain homes that appeal to investors are also seeing slower activity. Higher interest rates are a major factor behind this shift and are keeping some buyers out of the market.
“A well-maintained home ultimately sells faster and draws more interest.“
Slower pace. This drop in buyer activity is causing a slower pace, but conditions can change quickly. Some believe that buying when others are hesitant creates better opportunities. This may not work as well for short-term investors. A buyer who plans to flip a property may struggle if the market continues to soften during the process.
Despite the slowdown, many homes are still selling. Over the weekend, I showed a few properties, and two of them went under contract shortly after. Move-in-ready homes that need little to no work are attracting offers. This is why sellers should focus on preparation. Addressing repairs and fixing deferred maintenance will help attract serious buyers. A well-maintained home ultimately sells faster and draws more interest.
Are prices softening? The answer depends on the data source. Some data sets suggest stability, while others show decline. Interest rate predictions are equally divided, with some expecting a drop later this year and others anticipating increases. With so much uncertainty and so many variables in play, it is understandable that buyers may feel hesitant.
If you have any questions about the market or need guidance, just reach out. You can call me at 515-681-5677 or send an email to timothyschutteteam@solddesmoines.com. I look forward to hearing from you.