When there are a lot of homes for sale, that’s good for buyers. Not only does it provide more opportunities to find a place that fits their needs, but it also helps keep home prices in check. That’s because prices rise when there are more buyers than available homes and fall when there a lot of homes for sale but fewer interested home buyers. These days, the inventory of homes for sale is growing. In fact, according to new numbers from the National Association of Realtors’ consumer website, January marked the 27th-consecutive month of improvement, pushing active listings 10 percent higher than last year. But while inventory is still increasing, it’s moving at a slower pace. Danielle Hale, the website’s chief economist, says that’s keeping home prices firm. “After meaningful inventory gains last year, the recovery has lost steam,” Hale said. “Even with more homes on the market than a year ago, supply remains well below pre-pandemic levels, keeping prices firm nationally.” In January, the number of homes for sale was 17.2 percent lower than it was during typical levels between 2017 and 2019. (source)
