More Homes, Slower Price Growth – What This Means for You as a Homebuyer Right Now

If you’ve been waiting for the right time to buy a home, the current market might just be what you’ve been waiting for. With more homes on the market than we’ve seen in years and a noticeable slowdown in price growth, things are looking up for potential buyers. Whether you're a first-time homebuyer or looking to upgrade, the market has shifted in your favor. Let’s explore why more homes and slower price growth could be a game changer for your next big move.

More Homes, More Options – Why That’s Good for You

Have you ever felt like there were just too few homes to choose from? In recent years, the housing market has been tighter than a drum. But in 2024, that’s beginning to change. According to a report from Realtor.com, the number of homes for sale has surged, offering buyers more variety and better opportunities.

As of October 2024, there were 29.2% more homes actively for sale compared to the same time last year, marking the twelfth consecutive month of annual inventory growth. This increase is the highest we’ve seen since December 2019. While the market isn’t fully back to the pre-pandemic inventory levels just yet, the improvement is significant.

More Homes Mean Less Competition
With an increase in available listings, buyers are less likely to face intense bidding wars. Remember the frenzy from a few years ago when homes would get snapped up almost immediately? That’s not happening as frequently now, which is a huge relief for buyers. Less competition gives you more breathing room to consider all your options and make a thoughtful, informed decision about your purchase.

Slower Price Growth – Could This Be the Perfect Time to Buy?

Over the last few years, home prices soared as buyers fought over a limited number of available homes. This surge in competition pushed prices up to levels many buyers couldn’t afford. But now, with more inventory on the market, home price growth is slowing down. In fact, in some markets, home prices have stalled or even started to decline.

Lance Lambert, Co-Founder of ResiClub, explains that in areas where the number of homes for sale has returned to pre-pandemic levels, price growth has softened. In some places, prices have actually decreased from their peak in 2022.

What does this mean for you as a buyer? The slowing price growth can give you a better chance to find a home that fits your budget. If you’ve been struggling with rising prices in recent years, this could provide some relief. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), states, "Relatively flat house prices may improve housing affordability." Essentially, slower price growth means more homes might now be within your financial reach.

Local Market Trends – Why Your Area Might Be Different

While the broader trend is one of more inventory and slower price growth, it’s essential to remember that these shifts can vary by location. In some markets, housing prices have even started to decline, while in others, prices remain relatively stable.

This is why working with a local real estate agent is crucial. A skilled agent who knows your area can help you understand the nuances of the local market. They’ll be able to guide you through the inventory levels, price trends, and competition specific to your desired location, which can make a world of difference in your search for the perfect home.

How to Take Advantage of This Shifting Market

If you’re thinking about buying, now could be the time to jump into the market. Here are a few tips to help you make the most of the current housing conditions:

• Don’t Rush, Take Your Time: With more homes on the market, you have the luxury of considering more options and not feeling pressured to make an offer within hours of seeing a house. Take the time to explore multiple listings, attend open houses, and weigh your options carefully.

• Consult a Real Estate Expert: Working with a local agent is more important than ever. They’ll keep you informed on price trends, inventory changes, and the best neighborhoods for your needs. An experienced agent can also help you navigate the negotiating process, especially in a market with slowing price growth.

• Keep Your Budget in Mind: While price growth is slowing, it's still important to stay within your budget. Use this opportunity to negotiate, but don’t stretch beyond your financial comfort zone. Your ideal home is out there, and with more options available, you’re in a great position to make a reasonable offer.

Why Waiting Could Be a Mistake

For some buyers, waiting for prices to drop even further might seem like a smart move. However, keep in mind that housing markets can change quickly. The combination of more homes on the market and slower price growth could represent an ideal window for you to secure a home that meets your needs.

Additionally, mortgage rates are still a significant factor in homebuying decisions. Even if home prices are stabilizing or slowing, higher mortgage rates can affect your monthly payments and your long-term affordability. If you find a home within your budget now, waiting too long might put you in a position where interest rates rise even further, making it harder to afford a home later.

The Bottom Line – The Market Is Shifting in Your Favor

The increase in available homes combined with slowing price growth creates a unique opportunity for buyers right now. You have more options than ever before, which means less competition and more chances to find the home that works for your lifestyle and budget. With prices stabilizing in many areas, this could be a golden opportunity to make a move without overpaying.

Whether you’re looking for a first home, an upgrade, or a place to retire, the current market conditions can give you an edge as a buyer. Don't let this opportunity slip by—reach out to a local real estate agent who can guide you through the process and help you make the best choice for your future. Ready to take the plunge? The time to buy might be now.